1/16/17 was up 1.11 to 65.60. At one point this morning the GGGs were trading at a discount to the component ut they have now rallied and they are just barely at a premium to the component. Packers are continuing to bid higher for hogs. The USDA says there are more hogs in the pipeline and they could start coming on just before th GGGs go to cash settlement. Earlier this morning traders pushed hogs down like they thought the kill was going up and swamp demand but now they seem to be thinking this up-trend could go on for a while.

The 6-day moving averae carcass weight eased to 213.30# this morning. That is only -1.15# year/year. Packer hogs were somewhat lighter in weight today being only +3.96# heavier than non-packer hogs. The percentage of hogs that were packer hogs was a little higher yesterday. This may mean that packers did not get the hogs purchased they were wanting so they pulled a few more of their hogs in. It surely is possible that the strong up-trend in the Index will start pushing the GGGs up a little. At this point it is a guessing game on whether and/or when those extra number the USDA counted will begin coming to market.

I got a couple of scalps on the early morning dip. I was hoping for a bounce that would let me move out some of my long GGGs but it didn't happen yet.

Best wishes,

dhm