12/24/14 came in very near the middle of the range projected by the Hog Pricing Model. It was down 1.00. The GGGs are now premium to the index by 1.25. That's not much "Gap" with about 6-weeks to go before the GGGs go to cash settlement. Last year the GGGs went to cash settlement at 86.57. If the H&P report is correct in projecting the 180# and over category is down nearly 2%, (and the kill since 12/1/14 seems to be validating it) then there may be room for the GGGs to bounce a little before the kill begins to show the impact of some expansion.

There seems to be plenty of chicken coming on line and that might keep a lid on pork.

I moved my order to sell the Feb cattle/hog spread up to 80.475. It looks like I should have left it alone at 80.20. It is impossible to know what the markets are going to do. A fella has to make his best guess and then control the damage that may occur if proven wrong. The market may still give me an 80.475. If not today, then maybe Monday.

Best wishes,

dhm