2/14/19 was down -0.26 and the model projects the component on yesterday's kill will drop between -0.20 and -0.50.It appears that going to cash settlement short the GGGs was an all right thing to do since the GGGs closed at the component and in all likelihood the component today will pull the index down a bit.

Packers purchased 89.6% of the moving average daily of total hogs and 91.9% on the index hogs. The supply of hogs may be starting to tighten up slightly but packers are still having a challenge to move all the pork. Yesterday the cutouts were down another -1.12. At the end of the day, packers have to sell all they produce.

I believe at some point Trump and Xi will work out their differences. That should open up some export opportunities. The question is when will it happen.

Best wishes,

dhm