1/24/2020 was down -0.18 to 61.58. The GGGs are now trading premium to the component by +3.74. The model calculates that packers' gross margins are now +33.71 per index hog.

The 6-day moving average carcass weight moved up to 217.22#. That is +1.54# yr/yr. Index hogs were also up at 214.3#. Packer hogs are +3.33# heavier than the non-packer hogs. The kill rate is coming in quite strong. The gain in carcass weights in the face of a heavy kill rate suggests to me that producers have plenty of hogs in their barns.

I am glad I was short the GGGs but not so happy about being long the summer futures!!!

Yesterday I sold a June Cattle/Hog spread at 30.45. I thought about it for a while and decided that perhaps I had made a mistake so when I got a chance to cover it and make a few bucks, I jumped at the chance. Am now working an order to sell one at 31.30. It may take a while for that to hit - actually, it may never get there. But that is OK since I really don't have to do the trade.

Best wishes,

Doc