1/18/17 was up +0.63 to 66.98. T he GGGs are now trading discount to the component by -1.86. It seems to me to be a little irregular for the GGGs to be under the component considering the strong up-trend we are in. The obvious explanation is that "The Market" is expecting the big numbers in the H&P report to begin coming to market before the GGGs go to cash settlement or else the weakness in the cutouts yesterday was a prelude of things to come and packers are going to have trouble peddling all the pork they are producing.

At any rate packers are continuing to bring their hogs to marker at a heavy weight +4.37# heavier than non-packer hogs. Yesterday packer hog were a little heavier and non-packer hogs were down nearly 1/2#. Index hogs were unchanged at 211.73#. Overall the 6-day moving average carcass weight was up mildly at 213.20#. That is -1.02# year over year.

Kicked two long G/J calendar spreads off my boat this morning at my profit target and replaced them with one long M/N spread

Still long THE GGGs.

Best wishes,

dhm