11/16/16 was down -$042 and the model projects that the CME component on the 11-16-16 kill will drop between -0.20 and -0.50. It appears that packes are still beating hogs down. The ZZZs are now trading discount to the component by -0.98. To my amazement, at one point yesterday the ZZZs went premium to the component.

With their lower bids, packers were able to purchase 81.3% of the moving average daily purchases. That is within the usual range.

Yesterday I piled on the short ZZZs back onto my boat that I took off on Tuesday plus a few. I had an order working to sell again this morniing at 48.90 but they didn't go there.

It looks like we weathered the storm yesterday, Dewey, and the piggies are letting our margin recover a bit today. This trade may carry over to next week.

Best wishes,

dhm