12/28/15 was down -0.27 to 52.99. This keeps the downtrend intact and it has ballooned the "Gap" to 6.26 with the GGGs premium to the component. On average the index does not tack on that much between New Years and expiration of the GGGs. Well, for that matter the index does not get beaten down as much as the case has been this year. It will take a ten point ITZ index move to make being long the GGGs profitable. To be sure that sometimes happens.

The six-day moving average carcass dropped to 213.46# this morning. I was expecting it would climb due to the slow holiday kill week. Packer hogs did get heavier but the non-packer hogs were lighter by more than a pound. That is a big one-day drop. Packer hogs are now +2.47# over non-packer hogs.

The hog market is rather quiet however I was able to ring the till by selling a G/J spread and taking a quick trip to the bank.

I have taken profits on all of my Q/V spreads. I would like to get long the spread again but not at this price level.

Best wishes,

dhm