2/4/19 was down -0.44 and the model projects the component on yesterday's kill will drop between -0.15 and -0.45. The GGGs are now trading discount to the component by -0.65.

With their lower bids, packers purchased 131.4% of the moving average daily purchases of total hogs and 93.9% on the index hogs.

It looks like the bounce in hog prices yesterday was a one-day wonder with no follow through today. Fortunately I unloaded a bunch of calendar spreads and can now reload if the market co-operates. So far I have been able to re-load two long V/Z spreads.

Best wishes,

D.H.