1/17 and 1/18/2020 was down -0.82 to 59.71. The GGGs are now trading premium to the component by +7.14. The 1.64 pop of the cut outs pumped packers' gross margins on index hogs up to 37.60. TShe model calculates the component will need to gain an average of +0.39 per day to close the "Gap".

The six-day moving average carcass weight was steady at 216.80#. That is +1.65# yr/yr. Index hogs were lighter at 214.47#. Packer hogs are heavier than non-packer hogs by +2.69#.

The seasonality high for the CME Lean Hog Index is the next check-point I am looking for. "The Market" is saying it will show up about the time that the NNNs go to cash settlement and it will be in the 87-88 range. I think we will get an ITZ five to ten point jump to the 93 to 98 range - - - it could even be one of his twenty pointers. It mostly depends on Chinese imports and the price controls their government uses to control inflation.

Best wishes,

Doc