3/27/19 was UP +2.40 TO 72.88. The model calculates that the component will need to tack-on +0.52 per day to close that "Gap". The component has gained and average of +1.99 per day over the past 8-days.

The 6-day moving average carcass weight was steady at 216.15#. That is +0.19# year/year. Index hogs were a bit heavier at 213.37#. Packer hogs were +4.47# heavier than the non-packer hogs. Packers are continuing to ship quite few more hogs than they shipped one-year ago. The carcass weight of the negotiated hogs is dropping rapidly. Could it be that these sky-high bids are pulling the negotiated hogs forward at a rapid clip?

I may have lost my sanity but I have been scaling into the summer futures as they have gone to limit with limit down being my last purchase on the NNNs. I don't know what is going on in the hog market but it seems to be out of sync with the fundamentals. It may be market jitters over the H&P report that will be released shortly. My margin is really going to suffer today and a limit down again tomorrow would be mighty painful. I hope we are not taking a trip to Abilene, Dewey. And I don't think we are. At least the data is not suggesting that.

Best wishes,

Doc