3/22/18 was down -0.66 to 61.99. That opened the "Gap" to -2.59 with the JJJs at a discount to the component. It appears that traders think we are headed lower - a lot lower. And they just might be right.

This morning the 6-day moving average carcass weight jumped to 215.05#. That is +2.42# year over year. Packer hogs were heavier by more than 1/2#. That is quite a jump on a moving average. Packer hogs are heavier than non-packer hogs by 1.92# in today's report. Packer hogs have been making up a larger than usual percentage of the kill mix. This makes me think that packers had expanded their production capability somewhat more than the non-packers and now they are trying to dump their over-load and this may be backing up the index hogs a bit. The moving average weight of the index hogs moved up to 214.66# today a one-day jump of 1/4#.

I got short a couple of MMMs this morning.

Best wishes,

dhmi