1/24/17 was up 0.42 to 67.96. That cut the premium the index component is carrying to the GGGs to 0.89. The fundamental just seemed to be saying that packers were wanting hogs and when they want hogs they will pay more for them.

The six-day moving average carcass weight firmed to 213.51# and it was the packer hogs that were heavier. Packer hogs were 1/3# heavier and non-packer hogs were down 1/4#. I continue to feel that the heavy packer hogs is a sign that packers need/want a bit more pork and so far they just keep paying more and more to get it. It seems to be the export trade that is soaking up the products - at least that is what the chatter on the 'Net indicates. If the thought that Chinese labor costs and feed costs are running their price of production up rapidly, they appetite for imports could increase unless Trump gets into a trade war with them.

I sold a couple of my long GGGs and am now waiting for a dip to pile them back on. Calendar spreads have been coming and going from my boat so fast this morning that I need to take a break to get a "Big Orange."

Best wishes,

dhm