10/24/17 was up +0.99 to 67.82. The ZZZs are now trading discount to component by -3.55. Traders are thinking the firm bids the packers are throwing around are not going to last. They will be right if demand crumbles but if demand holds, the ZZZs are going to be adding a few points to close the "Gap". Now mind you I am not projecting that demand will hold I simply say, "IF DEMAND HOLDS." There is a lot of pork being produced and last month a lot went into freezers.

I'm long some ZZZs but I'm not bullish. I'm simply trading with the trend and given a nice profit I will be flat the ZZZs.

The six-day moving average carcass weight firmed to 211.00#. That is -0.52# year/year. Index hogs were also a bit heavier at 210.55# suggesting that producers of index hogs are a bit more current the the rest of the producers. The percentage of packer hogs in the kill continues to run fairly high. I think packers have expanded production more than the non-packers and packers are continuing to bring their hogs to market heavier by +1.02# yesterday.

Ka!! Ching!! Just made a trip to the bank with profits from a long G/J calendar spread. Have plenty more on my boat that need to find another home.

Best wishes,

dhm