2/22/16 was down 0.04 to 66.36. The JJJs are now trading discount to the component by 2.89. I believe the by the time we get to cash settlement, the index will push the JJJs up a couple of points. In the mean time the JJJs are likely to be all over the place both up and down from where we are now. It is much too early for me to want to get long and hold for cash settlement so I will try to scalp in and out of the JJJs. I kept doing it all wrong today and getting stopped out over and over again and am now flat waiting for a new day and a new set-up.

Spread trading has been all right this morning with four new spread being piled on deck and three that I carried through the weekend making a trip to the bank.

The 6-day moving average carcass weight came in at 214.61#. That is -1.15# year over year. Index hogs continue to be somewhat lighter at 212.80#. Producers of index hogs are very current in their shipments. The six-day moving average carcass weight for packer hogs has dropped to 213.93#. For some reason packers seem to be moving their hogs out quite aggressively. And I don't know why. I don't think they are having trouble finding hogs so maybe they foresee a price decline - - but a severe price decline usually does not happen this time of the year and the numbers don't seem to point to a severe price decline so I will just keep working on some technical set-up to trade some JJJs.

Best wishes,

dhm