12/14/15 was up 0.26 to 56.06. When the model combined that with the component on Friday it spit out a cash settlement number of 55.90. If I haven't made a key-stroke error, that will be the cash settlement index. If you bought at yesterday's close of 55.55, you didn't get hurt.

Now relative to the GGGs - they are trading at a paltry premium of 2.51 to the component. If the last H&P report was correct and the kill rate will contract somewhat during the last half of January, there is a reasonable chance that the Index might give us a 5-point "ITZ"
addiction move up between now and when the GGGs go to cash settlement. So I am with Dewey being long the GGGs but I only have a measly two.

The 6-day moving average carcass weight eased to 214.35#. That is down -1.24# year over year. Packer hogs dropped somewhat more than the non-packer hogs. Packer hogs are only +0.93# over non-packer hogs. It appears to me that packers have been liquidating their inventory of market hogs at a rapid clip. Undoubtedly this has added to the kill rate and may set the stage for a decline in the kill rate in late January.

That would be consistent with the last H&P report.

I want to buy another GGG pig if we get back to the 58.40 level. It looks like I should have reached this decision earlier but I didn't have the numbers in the 201 report to work with then. I did pile another G/J spread on my boat, though.

Best wishes,

dhm