1/3/2020 kill was DOWN -0.03 TO 59.19. It looks like the GGGs are going to settle premium to the component by +9.36. The model calculates that the component will need to gain an average of +0.35 per day until the GGGs go to cash settlement to close that "Gap". That is quite a tall order and it will take strong exports to get the job done. I may have made a mistake getting long both a GGG pig and a JJJ pig. The strong packer bids on Friday did not firm the component nearly as much as the model projected. Maybe tomorrow there will be a little bounce.

The 6-day moving average carcass weight firmed to 217.36# That is +0.96# yr/yr. Packer hogs are +2.33# heavier than the non-packer hogs.

Best wishes,

Doc