2/6/19 was down -0.48 to 56.65. The GGGs are trading discount to the component by -1.05. "The Market" thinks the index is headed still lower between now and when the GGGs o to cash settlement next week.

The 6-day moving average carcass weight firmed a bit to 215.33#. That is +0.95 yr/yr. Index hogs are a bit lighter at 214.10# which is also a bit heavier. Packer hogs were heavier than the non-packer hogs by +2.66#. The data continues to point to continued packer expansion with the percentage of packer hogs in the kill mix continuing to grow. This may represent bullishness on the part of packers but I am beginning to think they are changing their business strategy to a higher degree of vertical integration. The dynamics seem to be right to force marginal producers to sell their sows.

Have you heard of,"Death by a thousand cuts?"

Well, that is the way the summer futures are treating me!

An interesting read: https://www.scmp.com/business/companies/article/2185161/efforts-contain-outbreak-swine-fever-china-rock-pork-industry

Best wishes,

dhm