1/8/18 was up 0.55 to 66.73. The GGGs are now trading premium to the component by +5.92 Not long ago the "Gap" was nearly ten points so there has been quite a bit of closing even though the GGGs have been quite strong. That says quite a bit about how packers have been bidding for hogs.

The six-day moving average carcass weight eased to 214.67#. That is +0.87# year over year. It still looks like the producers came through the low-kill holiday period quite current in their shipments. Index hogs were also a little lighter at 21..97#. Packers are continuing to ship their hogs to market at heavier weights by 1.56#. I think this indicates that packers are wanting the pork. Packer hogs were lighter yesterday by 1/3# and non-packer hogs were lighter by 1/2#.

Still a bit long the GGGs but not wildly bullish. Spreading has worked very well for me the past few days and is treating me well again today.

Best wishes,

dhm