12/20/16 was up +0.22 to 58.28. That was a little ster than the model projected but not too bad. The GGGs are now trading premium to the component by +6.57. Looking at the way packers are paying up for hog during this high kill season, my bias is that the index will gain enough to close the "Gap" so I am on the LONG side of the GGG market but not very long. I put them on yesterday and I have made a couple of scalps from the long side this morning.

The six-day moving average carcass weight eased to 210.99#. Packer hogs were nearly unchanged but on packer hogs dipped by nearly a pound. The non-packers are really staying current in their shipments and packers seem to making up for the lost poundage by finishing their hogs to heavier weights. Packer hogs were +4.34# this morning. Index hogs were lighter at 210.04#. That was down a sliver. III

This morning G/J spreads I bought yesterday were sold this morning. Sometimes they hang around for six-months and when they do and I have loaded my boat with 55 or 60 of them, I recite to myself Thomas Paine who wrote, "These are the times that try men's souls." Sometimes they really take patience. Currently my boat is riding fairly high in the water without nearly that many.

My favorite spreads are long K/Ms and Long Q/Vs.

Best wishes,

dhm