12/23/14 was down -0.70 to 80.20. The GGGs are now premium to the component by 1.18. That "Gap" appears to be all right with so much time left on the GGGs and the uncertainty surrounding the future of supply and demand. My bias is that the kill rate will remain tight enough to push the Index up a little so I am wanting to get long the GGGs. I am waiting for a price break below 80.00 to load my boat.

The six-day moving average carcass weight eased to 215.25#. That is +2/55# yr/yr. It was mostly packer hogs that got lighter. Perhaps the large percentage of packer hogs that were being kill for the last few weeks has emptied their pens a little and now they have lighter hogs. The percentage of packer hogs killed yesterday dipped to 24.91%. I can't remember having seen a number that low for a long, long time but I suppose it is just the way hogs are finishing at this point that is causing the variance.

I scalped out of the short Feb cattle/hog spreads. Got a little more than a half-point on each one and sold again at 79.375. Was working another order to scale in for a second round at 80.20 but ITZ over-whelmed the market at 80.00 and it turned south again. I have some space in my boat to sell the Feb spread on Friday and I have one I can cover at a profit if the spread heads lower.

Best wishes,

dhm