due to packer submission problems.
The change in the CME Lean Hog Index for the 1-6-15 kill was down 0.23 to 77.60. That puts the GGGs premium to the component by 1.42.
Based on the afternoon reports, the final Purchase Index will be a bit lower and the early projection is that the component on the 1-7-15 kill will be down something in the range of -0.40 to -0.70. It would be nice to have the morning reports so this projection could be refined.
I was wanting to get long the GGGs but the fundamentals have shifted enough to have caused me to abort that idea and give the market a bit more time to declare its intentions.
I'm wanting to get short the Feb cattle/hog spread. With the weak supply of cattle and the firm supply of hogs, there is a fair chance that the spread may climb to 91.00. So far this week the hog kill is running 13.84% higher than one-year ago. I will wait to get short until it tinkers with the 89.00 level. That way I can scale into a couple by the time it gets to 91.
Best wishes,
dhm