The CME Lean Hog Index component on the kill for -

2/6/17 was up +0.56 to 75.66. The sell-off in the GGGs has put them discount to the component by -1.56. It is a puzzlement why packers are bidding higher when there is so much negative sentiment in the market place and cutouts are breaking down. I'm suspecting they have some pork sold and are needing to meet their commitments.

The six-day moving average carcass weight eased to 214.65#. That is +1.87# yr/yr. Packer hogs were nearly 1/2# lighter than the day before but still +0.87# heavier than non=packer hogs. Index hogs were also lighter at 214.65#. Packers may now be running a few more of their hogs to market. And I wonder why? Is it because they are not wanting to pay-up for the non-packer hogs or are they sensing that the supply of hogs is getting to be burdensome and they are wanting to market their at higher pork prices?

Still have a handful of covered calls that are not yet a problem with five trading days to go.

Best wishes,