12/3/15 was up +$0.25 and the model projects that the CME Index component on the 12/3/15 kill will move up between +0.20 and +0.50. It appears that the up-trend is still intact. The weakness in the ZZZs has closed the "Gap" to 1.45 with the ZZZs being premium to the component. There are seven days-of-data still coming before we get to cash settlement. Since this up trend began the component has averaged tacking on 0.23 per day. If that same rate continue until cash settlement the Index will gain 1.64.

Cutouts posted a nice gain yesterday so packers have the jingle in their pockets to keep their bids firm.

HHHMMMMmmmmmm ! ! !

Looks like the ZZZs are prices just about right as we head toward cash settlement but the emotional/technical factors in the market place will produce trading opportunities between now and cash settlement.

Best wishes,

dhm