3/30/16 was up 0.24 to 65.65. With the JJJs showing some weakness the "Gap" has now been cut to 2.92 with the JJJs premium to the index.

The 6-day moving average carcass weight rose to 214.28#. That is only -0.15# year/year. Packer hogs are +2.40# over non-packer hogs. Index hogs are lowest of all at 212.60#. If this indicates that index hogs are quite current in their shipments, it will be a bit supportive to the index. Packers may be aware of this and are finishing their hogs to heavier weights to compensate.

I had been expecting a sharp drop in the JJJs to partially close the "Gap" and get the JJJs running in lock-step with the Index. Rather than the sharp drop I was expecting, it looks like it is going to just dribble down slowly.

Anyway, it makes being short the JJJs the way to be.

Best wishes,

dhm