1/9/19 was WAY, WAY UP by +0.99 and the model projects the component on yesterday's kill will be up between +0.50 and +0.80. So what do the futures do? They move lower across the board! The GGGs opened premium to the component by +7.92. That is quite a "Gap" that will need an average daily gain of +0.30 in the component to close it at cash settlement.

With their higher bids, packers only purchased 79.4% of the moving average daily purchases of total hogs and 88.6% on the index hogs. Cutouts were a bit weak yesterday but packers were anxious to buy hogs.

Still long the summer futures and one GGG. The futures have not dipped low enough for me to re-load my boat a bit.

Best wishes,

Doc