2/8/16 was up +0.49 putting the component at 65.22 and the GGGs are now trading discount to the component by 0.25.

The six-day moving average carcass weight slipped to 213.14# this morning. That is -2.56# year over year. I found more interesting that fact that the moving average on the Index hogs dropped to 211.82#. It continues to appear that producers of Index hogs are very current in their shipments. In fact, some liquidation of their inventory of market ready and near market ready hogs may have occurred and the higher bids by the packers is bringing in lighter and lighter hogs.

The model has been projecting for a while that the Index would eventually push the GGGs higher by the time we get to cash settlement.

That possibility seems to still exist.

I have been scalping in and out of the GGGs this morning and still have a couple more than I started with this morning.

Best wishes,

dhm