2/29/16 was down -0.09 to 66.70. That puts the JJJs premium to the component by 3.15. The numbers are suggesting to me that packers have some more expensive hogs purchases that they have not yet killed and when those hogs are run through their plants, we will get a bit of a compensatory jump in the Index.

I might be wrong but that is what the numbers seem to be saying.

The six-day moving average carcass weight eased to 213.06#. Index hogs continue to come in at lower weights at 212.27#. I keep thinking this may be an early warning that we are going to see some tightness in the supply of Index hogs. If the firm price of the cutouts means that demand if fairly good, declining supply could cause packers to loosen their purse strings and bid up a little.

I'm now long the JJJs.

Best wishes,

dhm