1/7/15 was not as weak as projected from the afternoon reports - - - It was down -$0.36 and the model projects that the CME Component on the 1-7-15 kill will drop between -0.20 and -0.50. We are still in a down trend and the kill is still running quite a bit above last year.

Packers made a good purchase with lower bids yesterday. They got 94.6% of the daily purchases. In view of the fact that the scheduled number yesterday was 9.3% higher than one-year ago, it appears that we are still on our way for quite a bit higher kill numbers than one-year ago. From the hogs and pigs report I had thought that the higher kill numbers would not begin to show up until after the GGGs went to cash settlement but they seem to be here right now!

Best wishes,

dhm