The CME Lean Hog Index component on the kill for -

4/5/19 was only up +0.07 to 78.71. The numbers seem to suggest that packers may have a few more expensive hogs that will keep the component firm for the next day or two. The JJJs are trading just barely premium to the component by +0.07.

Friday the 6-day moving average carcass weight firmed to 215.52#. That is -0.29# yr/yr. Index hogs were a bit heavier but still lighter than the other categories at 213.37#. Packers are still shipping their hogs heavier by 3.79#.

The ASF virus may still be spreading in China. It has made a 1400 kilometer jump into the most western part of China and it is spreading in Vietnam and Cambodia. Chicken production may surge to replace a lot of the missing pork. I am still long the deferred contracts and HODLing.

Best wishes,

Doc .