1/28/19 was, as expected, down and it was down very much in line with the model's projection being down -0.37 to 57.67. The GGGs are now trading in lock-step with the component at 57.67. "The Market" may be re-considering and deciding that it has beaten the summer futures down too much. That is good news for both Dewey and me.
The six-day moving average carcass weight eased a bit to 215.38#. That is +1.11# yr/yr. Index hogs were also a bit lighter at 214.00#. The weight of packer hogs was steady but the non-packer hogs dipped by nearly 3/4#. Packers are continuing to ship heavy hog being +3.77# over the non-packer hogs. Not only are packers shipping heavier hogs, they are shipping lots of hog. Over the past six days packer hogs made up 36.1% of the kill while the 200-day moving average has been 34.62%. Vertical integration is proceeding at a fairly rapid clip.
. Best wishes,