1/29/19 was unchanged at 57.67. It is not often that we get an unchanged component. The GGGs settled discount to the component by -0.22. The kill yesterday was reported at a measly 261K making the week to date down =14.2% yr/yr. Perhaps some plants closed because of the cold weather. It is highly unlikely that it was because hogs were in short supply. It is possible packers just have too much pork already processed and are wanting to clear out some before they produce more. I say that because cutouts were down a whooping 1.70 and that is not a good sign for produces and trading bulls.

The six-day moving average carcass weight was steady at 215.41#. That is +1.14# yr/yr. Packer hogs are heavier than non-packer hogs by 3.84#. Packers continue to ship their hogs at heavier and heavier weights and the percentage of packer hogs in the kill mix continues to run higher and higher.

Best wishes,

dhm