10/19/15 was UP 0.03 to 74.37. The surge in the ZZZs this morning has closed the "Gap" to -5.82 with the ZZZs being discounted. I had been thinking the "Gap" was too wide and it has now closed to a more realistic level. The past few days the packers have been shifting their kill around to different priced hogs causing the Hog Pricing Model to miss on it projected change in the index component. Yesterday it projected much too high and when more expensive hogs were killed yesterday the projection was too low. Basically, though, I am happy with it and feel it is a tool worth using.

The six-day moving average carcass weight was steady yesterday at 211.52#. That is -2.87# yr/yr. Packer hogs were heavier by a slivver and non-packer hogs were lighter by about twice that amount. My conclusion is that producers are keeping quite current in their shipments and the lower kill is a reflection of the inventory of hogs producers have in their barns.

This morning I have been able to add to my cargo of hog spreads. I have turned one into "Green" and another is teasing me.

Best wishes,

dhm