3/4/19 was only down -0.11 to 51.87. The JJJs are now trading premium to the component by 6.48 and that, my friends, is quite a "Gap" with just over a month until we go to cash settlement. One year ago the JJJs were trading premium to the Index by +1.11. One year ago the JJJs were trading at 68.80 and they ended up going to cash settlement at 53.53. That's a collapse of more than 15 points. "The Market" is not expecting anything like that to happen this year.

The 6-day moving average carcass weight eased to 215.08#. That is +0.33# yr/yr. Index hogs were also lighter at 214.07#. Packer hogs are now +3.80# heavier than the non-packer hogs. The is the most packer hogs have exceeded non-packer hogs for quite a while and packer hogs are continuing to make up a larger percentage of the kill than last year. Packers are continuing their vertical integration. The supply of market ready hogs may be taking a dip. I say that because packer hogs were 1/2# lighter and the non-packer hogs were down 3/4#.

I am happy with the strength of the deferred contracts today and I am sure Dewey is also.

Best wishes,

dhm