1/15/2020 was up +0.47 to 60.37. The GGGs settled premium to the component by +6.50. On average over the past 6-years, from this date until cash settlement the index gained +2.15 per year, It is going to take more than "Average" gains to close that "Gap".

The 6-day moving average carcass weight dipped to 217.73#. That is +1.89 yr/yr. Index hogs were also down a little at 215.57#. Packer hogs are heavier than non-packer hogs by
+3.01#. Sometimes when packers anticipate a decline in the kill rate and higher prices, they begin holding their hogs back and kill more purchased hogs. That may be what is happening now.

Cutouts were up +0.80 per cwt today. The model calculates that packers gross margins on Index hogs were $32.20 per index hog. Of course packers want more but they can do all right at that level.

Best wishes,

Doc