The CME Lean Hog Index component on the kill for -

1/21/18 was FIRMLY UP by +0.62 to 58.71. The GGGs are now trading premium to the component by +2.84. The model calculates that the component will need to gain an average of 0.17 per day to close the "Gap". On average over the past 6-days it has gained +0.21. The up trend appears to be strong enough to close the "Gap" and perhaps push the GGGs up another notch. I'm long the GGGs and added another one this morning and am prepared to buy again if we get a fair-sized dip. I am continuing to HODL the summer futures.

The 6-day moving average carcass weight eased to 215.25. That is +1.01# yr/yr. Packer hogs were lighter by about 1/3# and non-packer hogs were down nearly 3/4#. Perhaps the high kill rate we have seen lately has got the producers very current in their shipments. It may be the packers who are especially getting current in their shipments. The percentage of packer hogs in the kill mix has declined and the carcass weight of packer hogs is now down a bit.

Best wishes,