1/5/18 soared by +1.53 moving the component up to 6.18. The GGGs are now trading premium to the component by 6.52. Just when I thought we were getting the "Gap" closed to a reasonable number, this happens.
The six-day moving average carcass weight firmed to 214.99#. That is only +1.10# yr/yr. Packer hogs were heavier than non-packer hogs by 1.89#. Either packers are wanting the efficiency of processing heavier hogs or else they has sold the pork and they need to produce it with heavier hogs. I don't think it means producers are behind in their shipments. Just too many hogs moving for producers to be out of currency.
There may be a bit of a weather market going on. I know I wouldn't want to be shipping hogs here in Ohio with the temperature hovering around "Nothing"!
Never have I been to the bank so many times as I have this morning with profits from the G/J spreads. At least my boat is not at as much risk of being "Swamped." And I do have some room to take more spreads on board now.