2/1/19 was up +0.12 to 57.45. It looks like the GGGs will settle premium to the component by +0.07 and that is like saying the "Gap" is closed.

The six-day moving average carcass weight firmed to 215.90#. That is +1.02# yr/yr. Index hogs were up a bit at 214.19#. Packer hogs are heavier than the non-packer hogs by 4.01#. Packers are continuing to ship a higher percentage of the kill. I just don't know how much more vertical integration packers are going to do. I was reading this morning that it is expected most of China's back yard hog producers will be forced out of the business and there will emerge an increased number of large, corporate producers with better sanitary conditions and better bio-security. This may be the only way for them to get out of their ASF crisis. This apparently this is the Russia solved their problem. China may be looking for a huge drop in pork production in the near term, but in the longer term, most likely they will be back in two or there years producing plenty of pork.

I suppose you noticed, Dewey, that the summer futures were mostly a bit stronger today and it helped my margin.

Best wishes,

dhm