10/24/17 was up +0.81 and the model projects that the componenAt on yesterday's kill will move up between +0.65 and +0.95. The ZZZ settled discount to the component by 2.63. If we get a full point jump in the component the "Gap" goes to -3.63 (assuming the ZZZs don't rally). I don't know where the demand for pork is coming from but I have to respect it so I'm still long the ZZZs but I did take profits on one yesterday and scalped out of the extra longs.

With their higher bids, packers only purchased 72.2% of the moving average daily purchases of Index hogs. That low purchase number, together with the 6-day moving average carcass weight trailing the year-ago level has me scratching my head and wondering, "Are there fewer hogs than the last H&P report indicated?"

At any rate, I don't want to buck the up-trend going on in both the Purchase Index and the CME Lean Hog Index.

Best wishes,

dhm