10/16/17 was right in line with projections being up +0.85 to 61.52. The ZZZs are now trading premium to the component by 1.98.
The 6-day moving average carcass weight eased to 210.48#. That's -0.08# year over year. Packer hogs dropped 1/5# and non-packer hogs dipped by more than 1/2#. Packer hogs are +0.77# heavier than non-packer hogs. The number of hogs in the kill mix fell to 31.30% yesterday. This is the time of the year when hogs should be finishing quite rapidly and often shows up as a gain in carcass weights. It is possible that this lighter weight situation is telling us that hogs have been pulled forward a little. I don't know whether there is anything significant about packer hogs coming in heavier on a lighter percentage of packer hogs being killed. It could mean that packers are wanting more pork so they are holding their hogs back a little or it may be just the way their shipments are scheduled.
This dip gave me a trend line reversal signal to get long. So I am working a buy order but for just one and if it's filled, I will have a very tight stop.
Calendar spreads have been very active for me this morning having made 14 trades. Nearly half were "Round-trippers" and that is always the goal to get 'em on and get 'em off!!
Best wishes,
dhm