1/20/16 was up +$0.55. The model is not yet able to project the gain this will cause in the CME Index but there is little doubt that it we will see an up-move when the report comes out this morning.

With their higher bids, packers were only able to purchase 84% of the moving average daily purchases. The falling carcass weight of the Index hogs suggest that producers of Index hogs are very current in their shipments. I believe this means that packers will have to continue bidding higher if demand holds and the firmness in cutouts yesterday seems to be pointing to firm demand.

Yesterday I scalped in and out of the long GGGs that have but when the day ended I still had two long GGGs. I added another long on this morning's dip and had an order working to buy another but it missed.

Best wishes,

dhm