The CME Lean Hog Index component on the kill for -

2/19/19 was UP 0.11 TO 54.19. What a most welcome surprise!! The "Gap" has now closed to +0.29 with the JJJs premium to the component but just barely.

The 6-day moving average carcass weight was up a bit at 215.61#. That is +1.30# yr/yr. Index hogs were a bit lighter at 214.58#. Packer hogs are heavier than non-packer hogs by +3.93#. The heavier carcass weights has me thinking perhaps producers are behind a bit in their shipments but I may be totally wrong. The high kill we have seem over the past month or so could represent hogs being pulled forward and the heavier carcass weights are a reflection of packers wanting and producing heavier hogs for increased processing efficiency. If producers have pulled hogs forward a bit, it is possible that today's drop represents the capitulation of the bull and prices will now stabilize and possible firm a little. Of course packers must sell the product for that to happen.

I am still HODLing summer futures and now have a couple of long GGGs. Some of the spreads are working well for me so all is not lost.

Best wishes,