1/12/16 was up +0.34 to 54.92. The "Gap" is now +6.93 with the GGs being premium to the component. It appears that we have now begun the up-trend that usually starts after New Years and continues until Memorial Day. Now it is not going to be straight up but there will be but there will be a lot of jumps and jiggles making plenty of trading opportunities.

On average over the past eleven years the Index has gained 3.61 from this date until the GGGs go to cash settlement. The most it has gained during this time period has been 12.39 and the most lost was -14.74. My bias is the that Lean Hog Index has been beaten down enough to make a jump more likely than a decline and the jump will be sufficient to push the GGGs up a little. This morning I decided to buy two GGGs on this dip with the intent of holding them to cash settlement. I may scalp in and out many times between then and now but sticking with two long GGGs.

Yesterday I was able to get a lot of spreads off my boat. Now to see if I can safely re-load.

The six-day moving average carcass weight was 215.42#. That is a bit higher than it was before Christmas. Producers may be less current in their shipments than they were a few weeks ago.

Best wishes,

dhm