2/11/16 was up +$0.07 and the model projects that the component on the 2/11/16 kill will be up between +0.10 and +0.40. The GGGs are now trading 65.80 which is at the component. With prospects being fairly high that the CME Lean Hog Index is going to move up a little at cash settlement, there is little reason to take profits. Rather I will be content to go to cash settlement. It won't take much of a dip today and I will be buying a few more GGGs.

My hog pricing model has really been a handy trading tool for the GGGs. Sometimes it will catch a trend and work well and sometimes it doesn't work for sour grapes.

With the 6-day moving average carcass weight on Index hogs being below the rest of the market, I think producers of Index hogs may have pulled their hogs forward a little.

Best wishes,

dhm