1/15/15 was down -0.61 to 75.27 putting the GGGs at a discount of 1.00 to the component. Traders think the Index is still on a down trend with some down side to come. Because of the strong seasonal tendency for the index to rise, I have been wanting to get long the GGGs.

But -

Because of the fundamental data that comes in day after day showing a down trend, I have chosen to remain on the sidelines and missed the trading opportunities that have come to those brave souls willing to sell the GGGs and JJJs and KKKs and MMMs and NNNs. The spreads I do have have been relatively stable.

The 6-day moving average carcass weight firmed to 216.9# which is +2.60# yr/yr. All of the gains in weight came from heavier packer hogs. Currently the percentage of the kill that is packer hogs is a bit higher than usual. Perhaps packers have expanded more than the independent producers.

Best wishes,

dhm