1/7/18 was up 0.69 and the model projects the component on yesterday's kill will be up between +0.35 and +0.65. Yesterday I received a surprise when the component on Friday's kill jumped +1.25. A lot of "Gap" gets closed with moves like that. The GGGs settled premium to the component by +6.69. The strong up trend in the index and the ASF problem is enough to keep me long the GGGs and summer futures.

Packers purchased 90.5% of the moving average daily purchases yesterday for total hogs and 88.8% on the Index hogs.

Best wishes,

Doc