1/27/2020 was up +0.47 to 62.05. The GGGs are now trading premium to the component by +4.62. The model calculates that the component will need to gain an average of +0.33 per day to close the "Gap". Over the past five-days the component has gained an average of +0.27 per day. If packers do not scare up some demand from someplace, the GGGs will end up giving up another point or two. Over the past 6-years from this date until cash settlement the index has gained an average of +0.84.

The 6-day moving average carcass weight moved up to 216.82#. That is +1.45# yr/yr. Packer hogs are heavier than the non-packer hogs by +3.46#. Index hogs were also a bit heavier at 214.51#. The percentage of packer hogs in the kill mix has declined to 38.8%. At one point it was running over 40%.

best wishes,

Doc