1/22/19 was down -0.25 to 58.47. The GGGs are now trading premium to the component by +1.90. That is not much of a "Gap" and my expectation is that the closure will entail so strength in the component by the time the "Fat Girl Sings" and the GGGs get put to bed.

So-

I piled a couple of GGGs on my boat this morning and I hope the "Drink" doesn't get too rough for my boat.

The 6-day moving average carcass weight was steady this morning at 215.26#. That is +1.03# yr/yr. Index hogs were a bit lighter today at 214.17#. Packer hogs are heavier than the non-packer hogs by 3.05#. There is nothing apparent to suggest that packers were selling in anticipation of a price decline.

Pork production continues to be substantial and it will take some no small amount exports to keep prices up. I am suspecting at some point strong Chinese demand will develop but they may be in a liquidation phase at this point in time and that could depress prices.

Best wishes,

dhm