1/17/17 was (as expected) up +0.76 to 66.35. The GGGs are now trading discount to the component by -0.08. That is not very much but it does seem a bit irregular for the GGGs to be at a discount considering the powerful up-trend the index is in. But surprises in the hog market are not unusual. Since packer did not make a very good purchase yesterday, I'm expecting them to be bidding firm today, also.

The six-day moving average carcass weight eased to 213.09#. That is -1.18# yr/yr. The weight of packer hogs was steady but non-packer hogs were down about 1/3#.
This suggests to me that non-packer producers are very current in their shipments. Index hogs continue to come to market lighter at 212.08# and that was a bit lighter. Packer hogs were +4.12# heavier than non-packer hogs. This still suggests to me that packers are wanting more pork and sense that non-packer producers are not producing it so they are trying to get more pork by finishing their hogs to heavier weight. In my mind this is a bullish sign since packers know best! The percentage of packer hogs killed the past couple of days has been a little higher.

Still long GGGs but have cashed in a couple and am waiting for the one-point drop to buy them back. Was able to get two long two long G/J spreads off my boat at my profit target.

Best wishes,

dhm
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