2/24/2020 was down -0.17 and the model projects the component on yesterday's kill will drift downward between -0.10 an -0.40. I get the impression that the index is bottoming out but not yet making much of a thrust upward. The JJJs are trading premium to the component by 9.39. We are looking for the seasonality high. "The Market" continues to think it will be posted about the time the NNNs go to cash settlement and it will be in the 82.00 range. Packers now seem to be ready to ship their hogs at a more brisk clip. Packer hogs made up 43.92% of the kill on Friday pushing the 6-day moving average up to 41.6%. Cutouts were also up by +0.56 and the model calculated that Packers' Margins moved up to $19.48/index hog.

Yesterday packers purchased 124.5% of the moving average daily purchases of total hogs and 94.0% on the index hogs. Producers of index hogs seem to be more current in their shipments than the rest of the producers.

Yesterday I piled a few more calendar spreads onto my boat, otherwise I HODLed and the down-draft in the futures did a good bit of damage to my margin. It appears there will be some recovery today.

Best wishes,

Doc