1/5/17 was UP +0.47 TO 57.92. Yesterday I complained about, "Where are the packers coming up with all those cheap hogs to kill?"

This morning it looks like they ran out of cheap hogs and the component made a firm move up. I didn't get the final Purchase Index posted but it projected that the component would only be up +0.15 to +0.45 so we seem to be getting some compensatory move up today.

The six-day moving average carcass weight moved up to 213.72# with both packer and non-packer hogs being heavier. Packer hogs are +5.40# heavier than non-packer hogs. Index hogs are catching up with other hogs at 213.72#.

I continue to think packers know what they are doing in finishing hogs to a heavier weight so I rode a pair off long GGG pigs over-night. It does not look like a very smart mover right now but there is a lot of water to go under the bridge between now and when the GGGs go to cash settlement.

Best wishes,

dhm