1/19/15 was down -0.17 to 74.75. That puts the GGGs at a discount of 2.17 to the component. Obviously traders are thinking that the down trend is going to last a while longer.

And I suppose they are right.

Packers' margins aren't too bad so they are NOT under a lot of financial pressure to cut their bids aggressively. But they might anyway.

It appears I was a little too aggressive in buying the Feb cattle/hog spread but the damage in manageable so far.

Best wishes,

dhm