12/20/19 WAS, TO MY SURPRISE, up +0.72 and the model projects the component on Friday's kill will be up between +0.20 and +0.50. The GGGs are now trading premium to the component by +11.04. On average over the past nine-years from this date until the GGGs go to cash settlement the index has gained +2.65 per year. The most it has gained during that time frame was 17.13 in 2017. In 2015 the index lost -23.18. My friends, hang onto your Stetson's because we may be in for a rough ride!!

Because of the large "Gap", I am inclined to want to trade the GGGs from the short side. At this point I am flat the GGGs as out-rights although I have a few G/J spreads piled on my boat some of which have been there so long that they are beginning to get moldy. So far I have flipped enough of them to cover the risk I have on those longs that are still piled on my boat. It will take a significant dip to entice me to add more of the long G/J spreads.

Packers made a large purchase of hogs on Friday at 151.2% of the moving average daily purchases of total hogs and 141.5% on the Index hogs.

Best wishes,

Doc.

PS: I will not be surprised if the H&P Report is mildly friendly to the near-term futures.