12/23/14 was down -$0.82 and the model projects that the CME LEAN HOG INDEX will drop between -0.85 and -1.15. There does not seem to be any end in sight for the down trend in the Purchase Index.

But it will end.

Trends always end!

The H&P report pegs the 180# and up category of market hogs as being down 1.51% from last year. Last year they were up 0.85% and we got no revision. One year ago the GGGs were trading at 85 to 86. With beef being in short supply, the GGGs may be a little under-priced right now. If they dip below 80.00, I'm going to put my bear skin coat away and be a buyer.

The GGGs are now trading in lock-step with the CME index. It seems to me there is a good chance that the Index will rally enough to move the GGGs up a notch.

Yesterday I ended the day with my cattle/hog trading boat empty and I had to decide at what level to begin scaling back in. I decided that 79.325 was close enough and sold 2. I will scale in if we get more strength and scalping out if there is a dip. I'm willing to go into Christmas with a boat empty or a boat loaded.

Best wishes,

dhm