11/11/16 was down -0.54 to 48.27. Packers brought into the kiill pens a bunch of cheaper hogs than the model was expecting. The ZZZs settled today at a discount of -1.47 to the component. This down trend seems to be strong enough to push the ZZZs a bit lower but it will not be a smooth ride lower. One merely has to observe what went on today to realize that it will not be a smooth ride lower.

The six-day moving average carcass weight moved up to 211.96# with both packer and non-pacaker hogs being almost 1/4# heavier. Index hogs were about 1/3# heavier at 210.86#. The kill of packer hogs was very strong at 38.03% of the kill. It appears to me that packers have let their hogs back-up a little. They have to come to market and it looks like they started over the weekend.

Still shorat ZZZs and GGGs. I expect a temporary bounce tomorrow.

Best wishes,

dhm