12/5/17 was up +$0.26 and the model projects that the component on yesterday's kill will move up between +0.25 and +0.55. Yesterday the component was up +0.41 to 64.61. The ZZZs are now trading discount to the component by a paltry -0.y14. Packers purchased 82.2% of the moving average daily purchases of total hogs yesterday with their firmer bids and only 80.1% of the moving average daily purchases of index.

With cutouts holding firm and the index on a mild up trend, I have finally decided it is time for me to get long a little to go to cash settlement. The data seems to be saying that we are finally going to get a bump up in the index like we so often see as the ZZZs get ready to go to cash settlement.

The higher ZZZs and the lower GGGs enabled me to take four of long Z/G spreads to the bank that I piled onto my boat a few days ago. I was able to get some off yesterday and I now have very few left.

I am impressed with how Dewey always seems to be on the right side of the hog market with his outrights.

Best wishes,

dhm