10/29/15 was DOWN -1.24 to 70.60. That has cut the "Gap" to -10.70 with the ZZZs being discounted to the component.

The six-day moving average carcass weight continues to go up. This morning it is 213.44#. That is only -1.87# under the same date last year. Both packer and non-packer hogs were heavier but packers were finishing their hogs out nearly +4.0# heavier than the non-packer hogs.

Packers made a small purchase of hogs yesterday at 77.6% of the moving average daily purchases. That is the smallest number I have seen for quite a while. With cutouts falling out of bed, maybe they were wanting to clean out product. I hope packers don't slow down the chains and back hogs up. That would not be a good thing to have happen this time of the year!

I have taken on a few of the long G/J spreads. It looks like I should have been selling them and not buying them. On average for the past twelve years them have gone to cash settlement at -2.975. With them now being at -4.65 it might work out.

Best wishes,

dhm

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