11/2/17 kill was up +0.65 to 54.81. The VVVs are now trading +4.91 premium to the component and the ZZZs are premium by +7.44.

The six-day moving average carcass weight eased to 210.59#. That's +0.73# yr/yr. Index hogs were up a little at 210.12#. Packer hogs are a heavier by +0.77#. It is beginning to look like the heavier carcass weight is a continuation of the up-trend in carcass weights. I guess packers like the efficiency of processing heavier hogs. Both packer and non-packer hogs were about 1/2# lighter. If packers like heavier hogs and hogs were a bit lighter, perhaps producers are quite current in their shipments after all.

No longer short the VVVs and ZZZs but am short quite a bit of my margin. The calendar spread were very active yesterday and today and that cushioned the blow a little.

It appears that we did in fact see the "Valley" in this Hog Cycle last week. Perhaps some end-users of pork decided that it was a bargain and are now filling freezers to hold until spring and to put into the export trade.

Best wishes,

dhm