2/8/17 jumped +0.81 to 73.22. That closed the "Gap" to the point that the GGGs are only premium to the component by +0.68. Looking at the numbers, it does not appear that this bull run is quite over. There is a lot of time left before the JJJs go to cash settlement and it could end before that if the flood of hogs that the USDA projected starts coming to market and demand dries up a bit.

The six-day moving average carcass weight firmed a little to 212.43#. That is -0.39# year over year. Over the past few weeks there has been a slight but steady decline in carcass weights. My guess is that these higher prices are pulling hogs forward a little. Even if the kill mushrooms as the USDA is projecting, the fact that producers seem to be current in their shipments (maybe even super-current) may dampen the slide in prices that often occurs around the time the GGGs expire or even a bit later.

Packer hogs continue to be heavier than non-packer hogs by 3.91#. This still smacks of bullishness on the part of packers. They are wanting more pork NOW and the only way they can get it is to finish their hogs to heavier weights.

I piled three more long GGGs onto my boat when the GGGs dipped during the second ten-minute bar. Have now turned them into green and am still holding the ones I carried over-night.

Best wishes,

dhm