The CME Lean Hog Index component on the kill for -

1/16/18 was up +0.80 to 73.35. The GGGs are now at a discount to the component by -0.35. With the uptrend that the component is on, it seems a little out of character for the GGGs to be at a discount to the component so I bought a couple more GGGs on the dip this morning.

The six-day moving average carcass weight exhibited just a tiny fraction of weakness at 214.42#. That is +1.53# year over year. I don't think the fact that carcasses are heavier than one-year ago means that producers are behind in their shipments, rather I think it means that packers are wanting to process heavier hogs. This feeling is re-enforced by the fact that packer hogs are running 1.49# heavier than non-packer hogs. This may also be telling us that relative to supply packers are feeling pushed by demand to produced more pork. Index hogs were also a bit lighter this morning at 214.59#. One cannot ignore the possibility that lighter weights are caused by cold weather slowing the growth of hogs just a little although I think it is hot weather that more often slows the growth of hogs.

Best wishes,