1/31/18 was up 0.13 to 73.93. The GGGs are now trading PREMIUM to the component by +0.19. That's not much but it is saying that traders are not expecting packers to lower their bids much over the next couple of weeks. I thoughtabout hanging onto some of the short G/J spreads thus getting long the JJJs but when I looked at the historical tendency for the JJJs to show weakness, I got cold feet and dumped them in the pond for ITZ's fish to eat. Now maybe he will catch a whopper!

The 6-day moving average carcass weight firmed to 214.55# this morning. That is +1.61# year/year. Index hogs were also a bit heavier at 214.60#. Packer hogs were heavier than non-packer hogs by +1.33# and packer hogs were 1/2# heavier today than they were yesterday. Non-packer hogs were a bit lighter. The persistence of packers shipping heavier and heavier hogs makes me think that demand is in good shape and packers know it!

Started building a position in the Z/G spreads this morning.

Best wishes,

dhm