11/28/16 was up +0.40 and the model projects that component on yesterday's kill will drift upward by +0.05 to +0.35. It is beginning to look like the large kill numbers over the past month or so may have been driven producers doing some liquidation of their inventory of market hogs and not the result of higher numbers in their barns.

That may explain why the carcass weights are a few pounds lighter than last year.

The ZZZs settled premium to the component by +2.36 yesterday. Traders have decided that packers are moving the product well and will keep their bids firm. They did yesterday.

Yesterday I dumped the last of the short ZZZ. That was not a good trade.

Best wishes,

dhm