2/27/18 was unchanged at 68.57. The sell-off in the JJJs now has them discount to the component by -0.32 which is really not that much but it sets in place a more bearish tone to the market over the next few weeks. Haven't been able to get a scalping set-up today.

The six-day moving average carcass weight was a bit firmer at 214.51#. That is +2.52# yr/yr. Producers may be a bit behind in their shipments but I also think packers are wanting to process heavier. Packer hogs are still running +1.28# heavier than non-packer hogs. Heavier hogs does mean more pork.

Index hogs were a bit lighter at 214.51#.

I bought the J/K spread this morning at -6.95. On average over the past six-years it has traded at an average price of -5.85 and gone to cash settlement at an average price of -4.66.
The highest cash settlement was +2.45 in 2014 and the lowest was -7.73 in 2016. Last year it went to cash settlement at -5.03. Historically the spread has a mild tendency to bottom-out around March 1st and then work a little higher. But historicals don't rule - it's the supply/demand factors here and now that makes the difference and supply seems to be quite high right now.

Best wishes,

dhm