3/30/18 was down -1.25 to 56.16. The JJJs are now trading discount to the component by 1.66. This says that traders are still thinking hogs are headed lower. The kill mix continues to be heavily loaded with packer hogs. Last week 34.1% of the hogs were packer hogs. General it has been in the 32% range so it appears to me that packers have expanded more than the non-packers and now they are getting their hogs out of their barns and it may be backing up the non-packer hogs.

The six-day moving average carcass weight moved up to 215.33#. That is +1.87# year/year. Both packer hogs and non-packer hogs were heavier but packer hogs tacked on a bit more than the non-packer hogs. Packer hogs came in +2.13# heavier than the non-packer hogs. This could get ugly if packers don't scare up some demand from somewhere.

Friday I finally got short a handful of JJJs and a couple of MMMs. The calendar spreads have been very active for me today with some loads coming and some going.

Best wishes,

dhm