The CME Lean Hog Index component on the kill for -

4/2/19 was up +0.82 to 78.10. The JJJs are now trading premium to the component by +1.10. The model calculates that the component will need to gain 0.14 per day to close the "Gap". Over the past two days the component has gained +0.80 per day.

The six-day moving average carcass weight was steady at 215.13#. That is -0.17# yr/yr. Packers are pulling hogs in fast enough with their higher and higher bids to keep producers quite current in their shipments. Packers are continuing to ship a higher percentage of the kill than they did last year and they are finishing their hogs to heavier weights. On the kill yesterday, packer hogs were +3.97# heavier than the non-packer hogs. Index hogs were lighter at 213.17#.

This morning I piles a couple of JJJs on my boat to take to cash settlement. There is a good chance that the up trend in the Index will push the JJJs higher.

Best wishes,