12/16/19 was up 1.14 to 60.96 The GGGs settled premium to the component by 8.89. The kill so far this week is only +2.82% over the same week last year.

The six-day moving average carcass weight eased to 215.72#. That is +2.14# yr/yr.. Index hogs were a bit heavier at 214.19#. Packer hogs are +1.55# heavier than the non-packer hogs.

Packers' gross margins have fallen to $39.13 per index hog. I will be watching the kill rate to see if the decline continues. The last H&P Report suggested that it would. In order to get the hogs to kill Monday, it appears that packers were having to sweeten their bids by quite a bit.

However -

The final Purchase Index for yesterday dipped by -0.88 and the model projects the component on yesterday's kill will be down between -0.20 and -0.50.

I want to see if the kill rate continues to be weak. By now retailer have their cases loaded for the holidays and with the "Gap" the GGGs have over the component I surely don't want to be long the GGGs.

Best wishes,

Doc