1/19/16 was up $0.41. I still don't have my model fully operational from the holiday mess up so it is not able to project the change in the CME Component but I am fairly confident that the up-trend will be continuing today, especially in view of the fact that the 6-day moving average carcass weight is showing some weakness. I taking this as an indication that available Hog supplies is dwindling a little.

Even with the higher bids packers were throwing out yesterday, they only were able to purchase 84.9% of the moving average daily purchases. For some reason producers were just not moing hog out in a robust manner.

All of these fundamental factors seem to have caught the attention of traders and they have bid the GGGs up until they are premium to the component by +6.35 and there are only 18-days until we go to cash settlement. We bulls better take note of that and not get carried away being long the GGGs. For now, though, I sticking with the two long GGGs.

Best wishes,

dhm