The CME Lean Hog Index component on the kill for -

1/4/18 was up 0.87 to 64.65. The GGGs are trading premium to the component by +6.75. That is quite a "Gap" but we have a month and a few days to go. In terms of current demand, the supply of hogs does not seem to be burdensome so I am still long the GGGs.

The six-day moving average carcass weight was up to 214.9#. That is +1.18# yr/yr. I'm suspecting the increase year over year is not an indicator that producers are behind in their, rather it is an indicator that packers are wanting heavier hogs. Packer hogs are +1.55# heavier than non-packer hogs.

WAs able to off-load five calendar spreads today. That takes some of the risk of my boat being swamped. It also makes room for me to add more next week.

Best wishes,