11/17/17 was down -0.57 and the model projects that the component on Friday's kill will fall between -0.30 and -0.60. Packers made a solid purchase Friday at 114.8% of the moving average daily purchases. They did a little better than that on their purchase of index hogs getting 122.9% of the moving average daily purchases.

The ZZZs are now trading discount to the component b -4.04. Traders keep on thinking that packers are going to cut and cut some more on their bid prices. That surely may happen but packers were able to keep the cut outs firm on Friday. When I saw the ZZZs open strong this morning, I thought it was not fundamentally justified so I sold a pair at 61.475. I hurried on to the bank on the dip and am letting the other work.

Best wishes,

dhm

PS: Just took profits on several calendar spreads.