1/2/19 was UP +0.77 to 53.58. The GGGs are now trading premium to the component by +8.89. That is quite a "Gap" but a short fall in the kill or a surge in demand can easily close that "Gap". My bias is that the "Gap" will be closed by the index moving higher but what I think or feel hold very little weight; rather it will be the supply/demand factors that will rule he day!

And so I wait and watch.

The 6-day moving average carcass weight firmed to 215.52#. That is +0.83# yr/yr. It looks like producers may be falling behind a bit in their shipments. They were running very current/ Index hogs were also a bit heavier at 214.49#.

Packers are continuing to own a larger and larger percentage of the kill. Vertical integration is proceeding at a brisk clip!

Still long the GGGs and summer futures. I sold some on this rally this morning so I can now buy a little if we get a dip.

Best wishes,

dhm