1/27/16 was up 0.78 to 60.62. Each time the component moves up, traders seem to bounce the GGGs and the "Gap" does not close much. It now stands at +5.38 with the GGGs being premium to the component. The model seems to be back working well after the holiday that I took.

The six-day moving average carcass weight moved up to 214.22# That is -2.32# yr/yr. It was the packer hogs that were heavier and once again the Index hogs got lighter in weight. It continues to appear to me that the supply of Index hogs is a bit tight and the producers of Index hogs are very current in their shipments.

These fundamentals give me enough bravery to continue holding long GGGs and I just added another one as a scalper.

Best wishes,

dhm.