the 3/6/2020 kill was up +0.14 to 57.14. The JJJs settled premium to the component by +6.31. The Index seems to have transitioned to an up trend having been up every day for the past five days. They have not been large gains but the fact that they ARE gains is encouraging in view of the very heavy kill rate. Cutouts were up 1.09 today and that pushed packers' gross margins up to $23.32/index hog.

The six-day moving average carcass weight moved up to 216.21#. That is +0.76# yr/yr. Index hogs were also a bit heavier at 214.71#. Packer hogs are heavier than the non-packer hogs by 3.22#.

I am still holding onto summer futures for dear life. "The Market" says the seasonality high is going to be 78.30 about the time the July futures go to cash settlement. Sometimes "The Market" is wrong and this is one of those times in my opinion. I think the probability is quite high that when the kill begins to decline (as it almost always does) demand will continue to be firm. Firm demand in the face declining supply equals higher prices.

Best wishes,

D. H.