12/26/14 was down 0.61 to 78.59. That's a fair amount weaker than the model projected and with the firmness in the GGGs, they are trading premium to the index by 3.31.

Based on the last H&P report and the kill rate since 12/1/14, it appears to me there is a fairly good chance that the supply of market ready hogs is going to tighten up a little and this may keep packers bids firm long enough to push the GGGs a bit higher. The "Gap" between the Feb cattle and the Feb hogs may also tend to firm hog prices a little, too.

I got long the Feb hogs this morning and am looking to buy again if they dip to 79.90.

Best wishes,

dhm