GGGs came in this morning at 66.27 with a range of 65.77 to 66.77. As I look at that number, I am concerned that the bad weather is causing packers to bid up for hogs and the strength will not hold if the weather breaks before the GGGs go to cash settlement. The weak 6-day moving average carcass weight of the Index hogs is not suggesting that producers have any sort of a back log of hogs to pull from.

This morning I was able to bank one of the long GGGs leaving me with five. If they dip a little, I will scalp back in with a couple. The data seems to be saying that a big drop in the GGGs is not in the tea leaves.

Best wishes,

dhm