The CME Lean Hog Index component on the kill for -

2/20/19 was down -0.26 to 53.93. The JJJs are now trading premium to the component by +1.12. It looking more and more like yesterday was the tail-end of the wash out. It was getting to be mighty difficult to continue to HODL.

The 6-day moving average carcass weight was steady at 215.02#. That is +.10# year over year. Index hogs were also steady at 214.56#. Packer hogs are heavier than non-packer hogs by +3.90#. Packer hogs were a bit heavier and non-packer hogs were a bit lighter. Packers are continuing to ship a larger percentage of the kill-mix than they did last year strongly suggesting that packers have increased their production capability.

This morning I was able to take two more long M/N spreads to the bank. I still have more on my boat than I should have. Maybe the worm has turned and more will make their way to the bank. I did get long a couple of GGGs and they are treating me all right today.

Best wishes,

dhm .