3/10/15 was -0.51 to 66.55. That puts the JJJs at a discount to the component by 0.77 and the MMMs are premium to the index by 10.83. There has been a lot of closure to the June "Gap" since I began calling attention to the fact that it was much too wide.

The six-day moving average carcass weight firmed to 214.55#. That is +0.62# yr/yr. Both packer and non-packer hogs were heavier. The continued firmness of the carcass weights suggests that producers have ample numbers of market ready hogs in their barns. Cutouts yesterday were only 1.28 higher than the CME Index component. That doesn't leave the packers much money to throw at hogs nor does it put them in a mood to throw money at hogs. My bias is that we continue to drift lower from here.

Best wishes,

dhm