2/14/17 was up +0.68 to 75.65. The weaknesss of the JJJJs together with the firmness of the Index has opened the "Gap" to -4.80 with the JJJs being discounted to the component. There is so much time from now until the JJJs expire that my model is of little value but that does seem like a big "Gp" with demand being so strong and packers bidding higher and higher day-after-day. I am long the JJJs but not very bullish and could be flat by the end of the day.

The cash settlement index for the GGGs is going to be 75.31 according to my model so I am pleased that I went to cash settlement with the GGGs.

The 6-day moving average carcass weight was a little firm at 212.38#. Packer hogs continue to be heavier by 4.3#. Packer hogs were a bit heavier today and non-packer hogs were lighter. I just keep thinking that packers are finishing their hogs to heavier weights because they want more pork. I don't like to fight the Fed in bonds and I don't like to fight the packers in hogs. The percentage of packer hogs in the daily kill mix has been a bit higher than usual lately but their carcass weights are holding so I don't perceive that packers are liquidating their inventory of market ready hogs.

Best wishes,

dhm