1/28/16 was UP $0.65 and the model projects that the component on yesterday's kill will jump between +0.65 and +0.95. With the carcass weight of the index falling, it might be that producers of Index hogs have been liquidating their inventory of market hogs mildly. If that is the case, there could be some underpinnings of support for the Index as we move toward cash settlement for the GGGs.

I chose to go overnight with four long GGGs and hurried of to the bank with two of them near today's high and am now looking to replace them. I still want to be long the two I have been holding for sometime.

This is shaping-up to be a good month and it is the spread trades that are working for me. I have made so many trips to the bank lately that my boat is now riding a little high in the water. I have plenty of orders working to re-load; it just that the market is not co-operating..

Best wishes,

dhm