MURICO.com Forum

The CME Lean Hog Index component on the kill for -

12/15/17 was down -0.94 to 62.81. That is a much larger drop than the model projected. The GGGs are now trading premium to the component by +4.81. Traders are anticipating that the supply of hogs will not meet the late winter demand and packers will bid higher.

Maybe Yes. Maybe no.

The six-day moving average carcass weight was unchanged at 214.71#. That is +3.15# year/year. Index hog were a bit lighter at 214.65#. Packer hogs are +1.27# over non-packer hogs. I think packers may now be wanting heavier hogs because it is more efficient to process the heavier hogs. I am impressed how carcass weights have gone up over the years. As a youth I showed hogs as an FFA project and we got docked if they were over 220# live weight. Now carcasses are almost that heavy.

The spreads have been quite active for me today. It is always nice when I can load a few on my boat and get them off the same day. Usually the hang around for a while and often for weeks or even months.

Best wishes,

dhm