2/13/17 was up +0.62 to 74.98. The "Gap" is now cut to +0.22 with the GGGs being premium to the component. This up-trend is so powerful that I just have to go to cash settlement with the GGGs I have left because think I might be able to wring a few more tics out of the market with them.

The six-day moving average carcass weight dropped to 212.28# this morning. That is -1.69# yr/yr. Packer hogs dropped by 1/3# and non-packer hogs were down by 3/4#. It appears to me that these high prices are pulling hogs forward. The high kill numbers suggested by the last H&P report may not have the dampening impact on hog prices that had long been anticipated if some hogs are pulled forward and demand holds firm. Packers are continuing to finish their hogs to heavy weights. They are now +4.39# heavier than non-packer hogs. I still view that as a bullish sign.

Hey, ITZ, that June cattle/hog spread is working well. Thanks for the heads (Ka!! Ching!!! just off-loaded a long Q/V spread) up earlier this month.

Best wishes,

dhm