1/10/19 was, in line with the model's projection, up 0.37 to 56.87. The GGGs are now trading premium to the component by +5.88. The model calculates that it will take an average daily gain of +0.23 to close that "Gap". Over the past seven days the component has gained an average of 0.58/day.

The 6-day moving average carcass weight firmed to 216.19# and it was the packer hogs that were heavier - by almost 1/4#. Non-packer and index hogs were a bit lighter. Packer hogs are now heavier than the non-packer hogs by +3.33#. Packers continue to provide a larger percentage of the kill-mix. Either they are bullish hogs are they have strategically decided to control the hog market through vertically integrating and they are now in the process of forcing the smaller, independent producers out.

I have taken this dip as an occasion to re-load my boat. If we run into rough water and I have to dump some overboard to keep from swamping the boat, it will be a sad day around here for me and Dewey..

Best wishes,

Doc