1/31/2020 was down -0.80 to 61.11. The GGGs are now trading discount to the component by -4.59. "The Market" is thinking the Index is heading lower still. The fact is that we still need to export pork to China to get rid of all that is being produced and with China in lock-down, exports may suffer. Packers' gross margins have now fallen to $17.44 per index hog. Packers have a tendency to NOT bid higher when their margins are falling.

The 6-day moving average carcass weight firmed to 216.97#. That is +1.07# yr/yr. Index hogs were essentially steady at 214.63# and packer hogs are +3.46# heavier than the non-packer hogs. Packers may now be going to work to move out their heavy hogs. The percentage of packer hogs in the kill mix is moving above 40% again.

The coronavirus has made the hog market a very difficult market for me.

Best wishes,

Doc