kill for 11/25/15 was up +0.15 to 55.81 putting the ZZZs premium to the component by +2.79. Both the Purchase Index and the CME Index are now trending higher and there is enough life left in the ZZZs for the Index to moe up and close the "Gap" and I as suspecting that is what will happen. It is not unusual for my suspicions to be proven wrong, WRONG, W R O N G!!

The six-day moving average carcass weight firmed mildly to 214.02#. That is -2.34# year/year. Either producers have hogs that are finishing very rapidly or else they have plenty of hogs in their barns. The kill rate is coming in reasonably close to projection from the H&P so there is a good chance that producers are well endowed with market ready and near-market ready hogs. If the kill continues to come in 7.0% to 8.0% higher than one-year ago, there may be a good bit of head-wind for the ZZZs to push much higher. If the H&P report was fairly correct, the kill rate may taper off a little somewhere around the time the ZZZs go to cash settlement. Maybe it is wishful thinking on my part, but this might result in some firmness to the GGGs. There is still blood on my boat from the short Z/G spreads on deck.

I am really glad I had a bunch of market money to work with, other wise I would be hurting.

Best wishes,

dhm