10/14/16 was down -0.12 to 52.25. The puts the ZZZs discount to the component by -10.65. That is quite a "Gap" but packers know how to cut prices when they get the upper hand.n

The six-day moving average carcass weight moved up to 211.28#. That is -0.34# yr/yr. Both packer and non-packer hogs were a little heavier and Index hogs jumped quite a bit to 210.05#. I think it is a given that hogs are finishing quickly; it is not clear to me whether or not producers are staying current in their shipments. My hunch is that as long as the carcass weight keeps moving up, producers are well stocked with market ready hogs and packers can keep bringing in hogs with weaker and weaker prices. Packer hog are +0.94# heavier than non-packer hogs. Packers may have expanded their production more than non-packers.

I sold a handful of ZZZs on the opening "Blip" higher. Took profits on one and still have a handful of shorts.

Best wishes,

dhm