12/30/16 kill was unchanged at 57.47. The "Gap" has now closed to +7.48 with the GGGs being premium to the component.

The six-day moving average carcass weight moved up to 212.29#. That is -2.29# yr/yr. Packer hogs were +6.48# heavier than non packer hogs. My thoughts are that packers finishing to a heavier weight is a bullish sign that they are waning more pork.

Why?

Because their margins are good and they are selling the product. They were bidding a little higher on Friday even though it did not show up as an increase in the component. This suggests to me that packers have some more expensive hogs in the pipeline that will be making their way to the packing plants over the next few days.

This morning I was able to take four calendar spread trades to the bank. I have cleared a bunch of them off the decks of my boat the last few days but still have a tidy-good load and plenty of room to do some re-loading if the market just co-operates.

Best wishes,

dhm.