12/12/16 was up +0.60 to 56.49. The ZZZs settled premium to the component by just 0.69. We get three more days of data to get us to cash settlement. The afternoon reports today seemed to point to another up day tomorrow. Considering the strong uptrend we have seen, I think there is a good chance that the component will push the ZZZs a bit higher. I have no bias relative to the other months - Zero!

The six-day moving average carcass weight was a bit lighter at 211.75#. That is -1.94# yr/yr. It appears that producers are staying very current in their shipments and cutouts are holding well. This is supportive of of my bias that the ZZZs will be pushed higher.

I didn't think the ZZZs should have been down today so I bought the dip.

Best wishes,

dhm