1/21/16 was up 0.57 to 58.10. The "Gap" has now closed to 5.17 with the GGGs being premium to the component.

The six-day moving average carcass weight was 214.80 this morning and that was nearly unchanged. It is interesting to note that the index hogs were somewhat lower at 213.71#. Their weights have fallen quite a bit over the past couple of weeks. The packer hogs continued to be heaviest of all at 215.01#. I think it is possible that producers of Index hogs have been shipping hog quite aggressively and if that's the case, there may be a bit of tightness of supply show up over the next couple of weeks. I guess that is what traders are thinking because they have pushed the GGGs to a premium.

I had some GTC orders working to buy some G/J spreads. I forgot to review them this morning and now I have my boat loaded almost the the point of being swamped with long G/J spreads.

Best wishes,

dhm