1/22/18 was up 0.44 to 73.69. The GGGs are now trading discount to the component by -1.77. I think there is a good chance that we are in a weather market with the producers being challenged to load out hogs in the cold weather.

The 6-day moving average carcass weight dipped to 214.24# in this morning's report. That is +0.79# year over year. Index hogs were also lighter at 214.24#. Both packer and non-packer hogs were about 1/2# lighter and packer hogs continue to run heavier than non-packer hogs by 1.05#. Either hogs are finishing more slowly in this weather or the other possibility is there are not as many hogs as the USDA estimated.

I'm still long the GGGs and scalping in and out a little.

The calendar spreads have kept me a bit on the busy side this morning. I turned my old boat in on a bigger boat and it is working just fine.

Best wishes,

dhm