11/16/17 was down -0.50 to 65.17. There was a lot of "Gap" closing hakppening this morning. It now stands at -3.99 with the ZZZs at a discount to the component. Packers can close that "Gap" by backing down what they will pay for hogs. If demand firm for pork, packers may be willing to keep their bids firm.

The six-day moving average carcass weight firmed to 213.21#. That is +1.53# yr/yr. Index hogs were also heavier at 212.95#. Packers are continuing to finish their hogs heavier by 1.56# over non-packer hogs. Packer hogs got even heavier yesterday adding 0.59#. It does not appear to me that producers are shipping hogs as fast as they are being finished. So far this week we are seeing the kill move higher. It may have to move even higher if the heavier carcass weights are signaling hogs being backed-up a little.

The bounce in the ZZZs didn't hold this morning but is enabled me to get a bunch of long G/J spreads off my boat. I still have a few left but can reload if they reverse and dip again.

Best wishes,

dhm