2/1/18 was up 0.33 to 74.27. The GGGs are now trading premium to the component by +0.33. Looking at the strength of the up-trend, we just might see the Index push the GGGs up a bit higher. It would be nice if the model was effective for the deferred contracts but it mostly works well when we get close to expiration. I'm still long quite a few GGGs but they are covering some short calls. It looks like the option premium harvest may be very nice!

The 6-day moving average carcass weight was up a little at 214.63#. That is +1.70# year/year. It is the packer hogs that are pushing the weights up. Packer hogs are +1.21# heavier than the non-packer hogs. I just keep thinking that is a mildly bullish sign but you couldn't tell it by looking at the JJJs and the beating they are taking. Index hogs were a bit heavier at 214.68#.

Best wishes,

dhm