12/28/16 was up +0.14 to 58.05. The GGGs are now trading at a premium of +6.80 over the component. It appears that traders are thinking the bulge in shipments will come a little after the GGGs go to cash settlement.

Maybe the are right and maybe they are wrong.

The six-day moving average carcass weight moved up to 211.19# which is not surprising with the disruption in the kill because of he holiday. It is a bit surprising to have it be the packer hogs that are getting heavier. They tacked on about 1/2# and non-packer hogs were a bit lighter. With hogs running -2.73# yr/yr, it appears that producers are generally quite current in their shipments.

Best wishes,

dhm