The CME Lean Hog Index component on the kill for -

1/18/18 was down -0.15 to 73.60. The GGGs are now trading discount to the component by -1.15. The six day moving average carcass weight eased to 214.49# that is +1.08# year/year. Packer hogs continue to be heavier than non-packer hogs by +2.11#. Packer hogs were unchanged in weight yesterday but non-packer hogs dipped by 0.41#. Index hogs were unchanged by 214.56#.

The component surprised me by being down rather than up. I was able to scalp out of the two GGGs and now I am back long again. We may be in a weather market with producers not being very anxious to load-out hogs. If that is the case, there may be quite a few hogs wanting to get out of the barn when the weather breaks.

Calendar spreads were moving well again today especially the G/Js. I kicked a bunch of them off my boat.

Best wishes,