shows that packers have 4.35% more hogs scheduled than they had on this date last year. The numbers continue to suggest that the expansion phase of the "Hog Cycle" is still going forward.

Yesterday packers made a solid purchase of hogs at 99.4% of the moving average daily purchases. And they did this with lower bids. Producers are still willing sellers. Usually this time of the year producers are looking at progressively higher prices, not progressively lower prices like we are seeing this year.

The Hog Pricing Model is showing that the CME Index component will need to drop 0.94 each day from now until cash settlement to get the Index down to where the GGGs are trading. That does not seem to be the trend we are on to get declines that large.

So I have bought GGGs and will take them to cash settlement. If we get much of a dip, I will add more.

Best wishes,

dhm