12/9/15 was down -$0.29 and the change in the component on yesterday's kill will be in the range of +0.05 to -0.25. It just might be that packers have now met their kill needs for the holidays and thise is cutting short the up trend that began last week.

It is interesting to note that the higher carcass weight of packer hogs versus non-packer hogs has fallen to 2.0#. This may be hinting that the high kill rate may be partially the result of some pulling forward of some packer hogs. From the H&P report it appears there may be a decline in the kill rate after the first of the year as soon as packers work through the back-up caused by the holidays.

I'm wanting to sell the Z/G spreads with the idea of becoming long the GGGs following the expiration of the ZZZs. It doesn't look like it is going to happen today!

Best wishes,

dhm