The CME Lean Hog Index component on the kill for -

3/7/18 was down -0.18 to 67.57. The JJJs settled last night premium to the component by +0.50.

The six-day moving average carcass weight was steady at 214.74#. That is +2.20# yr/yr. Packer hogs are now only 0.42# heavier than non-packer hogs. I have observed for a while that the percentage of packer hogs in the kill-mix has been a bit higher than usual. It now appears that packers are liquidating their inventorry of market hogs a bit. In addition I have also noticed that the daily purchases of hogs by packers has been a bit lower than usual. I don't view these as good signs for producers.

I'm still flat the JJJs but do have quite a boat load of calendar spreads bobbling around on rough water waiting for someone to take a few off my boat. Got rid of a couple yesterday but have plenty more looking for a new home.

Best wishes,