2/27/17 kill dropped by -1.26 to 75.18. That's a lot more than the model projected. It signals that packers are getting in a hurry to bring their cost of product down and keepa their margins. The JJJs are now trading discount to the Index component by -7.53.

Producers seem to be willing sellers as measured by the 6-day moving average dipping to 212.31 pounds this morning. That is -0.35# yr/yr. Index hogs are now a bit heavier at 212.56# and packer hogs are +3.84# heavier than non-packer hogs. It just might be that packers have been surprised by this collapse in the price of pork and now they have barns full of heavies to liquidate. The kill yesterday had a mildly larger than usual mix of packer owned hogs. Non-packer hogs dipped today by 3/4#. The non-packers seem to be keeping current in their shipments.

I'm still short four 65 and 66 puts and have them covered with six short JJJs which is mildly bearish but not wildly so. I think I see a bunch of fish jumping so I think ITZ is reeling them in. It doesn't look like he will be throwing any suckers back for me to pick up. My boat is fairly laden down with calendar spreads but hasn't been able to move away from the dock yet today.

Best wishes,

dhm