2/7/1 was down -0.04 to 75.61. The GGGs are now trading discount to the component by -1.91. Obviously traders are thinking that packers will be cutting back on what the will pay for hogs as they see cutouts continuing to erode away. And that might happen over the next four days. Looking a bit further down the road, the JJJs are discount to the component by -6.36. That may be where the real deep bid cutting will come from the packers.

The six-day moving average carcass weight was a bit heavier at 214.38#. That is +1.95# year/year. Packers are continuing to ship heavier hogs by +0.95# over non-packer hogs. Packer hogs were a bit heavier yesterday and non-packer hogs were down a bit. Index hogs were also a bit heavier at 214.76#. The weakness of the GGGs is doing my covered call trades no good but they are still doing well since some of the calls are very deep in-the-money.

Best wishes,

dhm