1/23/15 came in very close to projection at 72.66. That was down 0.62 on the component keeping in tack the down trend that has been going on since 12/8/14.

The six-day moving average carcass weight firmed to 216.41#. That is +2.67# yr/yr. No sign here that producers are running short of hogs. Packer hogs were a bit lighter so all of the weight gain came from non-packer hogs. The number of packer-hogs kill Friday was way up at 35.91%. Maybe they are running their hogs to market at a faster clip as they see prices decline.

The GGGs are discounted to the component by -2.86. Traders are thinking packers are going to lower their bids for some time to come. The GGGs are getting fairly short-term so the traders may be right. If the JJJs can bounce to 71.925, I think I will probe the short side. There still might be few tics left for "The trend is a friend" line of thinking.

Best wishes,

dhm