production is very high and the cutouts jumped over a buck today in spite of this high level of pork production. The ZZZs settled discount to the component by -3.65. From the afternoon reports, the model projects that the component on yesterday's kill will continue the upward trend jumping something like +0.50 to +0.80. I'm suspecting when traders see that in the 11:00 report they will bump the ZZZs up a notch to keep the "Gap" above -4.00.

Best wishes,

dhm