The CME Lean Hog Index component on the kill for -

1/9/19 was up +1.01 to 56.50. The GGGs are premium to the component by +7.13. The model calculates that it will take an average daily gain in the component of +0.27 to close that "Gap". The component has gained an average of 0.61 over the past six-days when the up-trend began. The dip this morning was not enough to give me fills on my futures buy orders but I have flipped a few spreads off my boat and piled some others on.

The six-day moving average carcass weight eased to 216.12#. Both packer and non-packer hogs were a bit lighter. but index hogs were up a bit at 215.3#. Packer hogs are heavier than the non-packer hogs by +3.28#. Packers are continuing to ship a higher percentage of the kill. Packers have really expanded their hog production over the past year and I see nothing to suggest their expansion is slowing.

Best wishes,