1/26/16 was UP 0.82 TO 59.85. That has opened the "Gap" to 5.43 with 12 more days until we go to cash settlement. I decided to take profits on the GGGs this morning but will get back long if there is a dip after this move up this morning.

The six-day moving average carcass weight went up to 214.17# this morning. That is -2.22# yr/yr. Both packer hogs and non-packer hogs were mildly heavier.

But -

Index hog carcass weights were mildly lighter. This continues to suggest to me that producers of Index hogs may have been liquidating their inventory of market hogs. If demand continues to firm, packers may be willing to begin paying a premium to get the index hogs.

Spreads have been moving quite well for me today. I made a round trip with the K/M spread. That is a bit unusual to get one on and off the boat in the same day.

Best wishes,

dhm