11-22-16 was UP +$0.25 AND THE model projects that the component on yesterday's kill will change in the range of -0.05 to +0.25. Data seems to be saying that packers still have a few cheaperr hogs purchased and this will keep the component soft for a day or so. The ZZZs settled yesterda premium to the component by 2.00. That is quite a turn-aroind from the large discount we recently had. That is really not a very large premium considering the way hogs and the index can jump around but itis a mild head-wind that the bulls have to fight.

Packer purchased 84.2% of the moving average daily purchases with their firmer bids yesterday. They may not have wanted a lot of hogs with the holiday tomorrow.

The cold storage report showed pork down 3% from the prior month and up 1% over same date last year. With the high kill rate, I was expecting some build in stored pork. Packers are doing a goo job getting the product sold and they price seems to be holding fairly well.

Best wishes,

dj,