3/5/2020 WAS ONLY UP +0.06 TO 57.01. The JJJs are trading premium to the component by +8.89. Even though the component failed to move up as much as projected, the fact remains that packers were lining up more expensive hogs yesterday and those hogs WILL keep their appointments at the packing plants and when they do it will be reflected in a firm Index. The model calculates that packers gross margins are $21.57 per Index hog.

The six-day moving average carcass weights moved up to 214.36#. That is +0.46# yr/yr. Index hogs were steady at 214.36#. Packer hogs are heavier than the non-packer hogs by +3.36#.

The search for the seasonality high may be moving into high gear with packers throwing more money at hogs. The firm cutouts yesterday may be giving packers the confidence they need to pay a little for the pork.

Best wishes,

Doc