2/3/16 was up +$0.17 and the model projects that the component on yesterday's kill will move up between +0.30 and +0.60.
With the "Gap" having closed to +0.74 yesterday with the GGGs being premium, it appears that we are going to see the "Gap" become mighty skinny when the 201 report comes out this morning. It continues to appear to me that the up-trend in the Index has the potential of pushing the GGGs higher.

With their higher bids yesterday, packers were only able to purchase 86.4% of the moving average daily purchases. One of the things i am struggling with is determining how much these low purchases is reflective of a shortage of hogs and how much is weather related. It does seem to me that foul weather can make shipping hogs more difficult. So far we are seeing the 6-day moving average carcass weight of Index hogs showing weakness and that is not suggesting an abundant supply of hogs.

I have been able to waltz to the bank with some GGGs profits while keeping four longs. Today I am watching for a dip to replace some of the ones I have sold. I hope the projected cash settlement index from the model is not leading me astray!

My boat is riding a bit high in the water so I am trying to pile on more spreads.

Best wishes,

dhm