12/30/15 was down -0.08 to 52.88. With the GGGs having settled Thursday at 59.80, we have a "Gap" of 6.92 with the GGGs being premium to the component. Obviously traders are thinking the price of hogs will take a MAJOR bump-up as we move forward. The seeds of that "Jump" may have been partially sown when Thursday when cutouts made a 1.05 rally.

One of the problems is that we rely on exports to carry off a significant portion of our pork with China being one of our customers. The Chinese markets are a day ahead of us so they have already posted their Monday's close and it was NOT good being down about 7%. This is spilling over to our bean market as well as our stock market.

The pre-opening quotes for GGGs don't look too bad but the JJJs seem to be setting the stage for quite a retreat. I have a few G/J spreads and will sell if the rally and buy more if there is a significant dip. I'm happy to report that 2015 was a good year for the commodity pool that my neighbor and I started in 2011 that targets on trading hog futures. It gained 10.79% for the year and has gained an average of 2.47% per month since we organized it almost five years ago.

Best wishes,

dhm