2/5/16 was up 0.29 to 64.73. As I look at my screen I see that the GGGs are trading premium to the component by merely 0.25. With five more days of data to come in, it appears to me that they will move in lock step and my guess is that the index will be firm enough to push the GGGs a little higher. Later this morning I will post the projected cash settlement index for the GGGs.

This morning I have been busy running to the bank depositing profits from the long GGGs, long G/J spreads and even a long Q/V spread.

The six-day moving average carcass weight is 213.48# this morning. That is mildly up and it was the non-packer hogs that were heavier. Packer hogs were a little lighter. Lightest of all was the Index hogs. Evidence continues to suggest that producers of Index hogs have become very current in their shipments. Last week the kill was down 3.41% year/year. This low kill may have been partially weather related so I not inclined to make a big deal about it.

I may buy back a couple of GGGs on the current sell-off after I up-date the projected cash settlement index.

Best wishes,

dhm