1/6/17 kill soared +1.15 to 59.37. That cut the premium of the GGGs over the component to 3.80. It looks like now is the time to do some work on the model to see if it will project a cash settlement index. The "Gap" of 3.80 is not very much of a burden for the packers to close considering the way they were buying hogs on Friday.

The six-day moving average carcass weight firmed to 213.90#. That is -1.73# year over year. Packers are continuing to finish their their hogs heavier at +5.59# over non-packer hogs. Index hogs are climbing in weight and they are now at 213.39#. That is not much below the overall carcass weights.

Best wishes,

dhm