2/2/17 was up +0.79 to 70.70. This up-trend in the index has been going on and on for several weeks and this is the biggest one-day jump we have seen for a while. Packers are getting all the pork they are producing at a price that is high enough to keep the packers coming back for more and more hogs each day.

The six-day moving average carcass weights were mostly steady today. Packer hogs are still +3.97# over the non-packer hogs. I continue to view this as a constructive sign indicaing that packers are finishing their hogs to heavier weights to make up for numbers that they don't have.

I keep saying I am long GGGs. You don't hear me saying I am long the deferred months for I am not. Conventional wisdom is saying that there are plenty of hogs that are going to show up a bit later. So for now I will stick with being long GGGs and then spread the rest. This morning I was able to sell three long M/N spreads at my price target. I have plenty more spreads looking for a home.

Best wishes,

dhm