2/12/2020 was down -0.30 to 56.55. The GGGs are trading discount to the component by -0.53. Since 1/30/2020 the component has dropped an average of 0.60 per day. That is a lot of red ink for the producers to have to contend with. It may be wishful thinking on my part but the data points seem to be suggesting that the CME Lean Hog Index is about to turn up and we will begin the serious chase to find the next seasonality "High". "The Market" is projecting it will come in at about 83.00 I believe there is a very good chance that it will be on the north side of 90.00 if the last H&P Report was anywhere near correct.

The 6-day moving average carcass weight was steady at 216.08#. That is only +0.74# heavier than one-year ago. In early December the 6-day moving average carcass weights were running +2.36# yr/yr. Perhaps producers are much more current in their shipments now. Index hogs were a bit heavier today at 213.96#. Packer hogs are +3.99# heavier than the non-packer hogs this morning. Packers have some work to do to get current in their shipments. Perhaps they know the kill will slack-off in two or three weeks when the 50# to 119# category of hogs begin coming to market.

I am plenty happy to see the J/K spreads stop going down hill. I have foolishly piled too many of the long ones onto my boat.

.Best wishes,

Doc