1-2-15 was UP $0.23. Packers bought an extremely large pen of hogs on Friday at 181.0% of t he moving average daily purchases and, as you can see, they were willing to pay up just a bit in order to bring them in. This holiday season disrupts the usual flow of hogs and makes crunching the numbers a bit difficult.

The last H&P report suggested that the heavier market hogs were down from last year. The kill since 12/1/14 is suggesting that the H&P report pegged the numbers about right. I'm going to carry a few long GGGs because I think the there is a good chance that the supply of market ready hogs may be a short enough supply until the GGGs go to cash settlement to keep the index firm.

But I might be wrong.

Best wishes,

dhm