12/6/17 was up +$0.30 and the model projects that the component on yesterday's kill will inch higher by +0.15 to +0.45. The ZZZZs are now trading discount to the component by -1.12. While it is true that cutouts took a beating yesterday, we are in a high demand period and the Purchase Index has now turned up so I'm expecting the ZZZs to be pushed up a point or two by the rising index.

Packers made only a fair purchase yesterday at 83.6% of moving average purchases of total hogs. They did a bit better on index hogs at 97.3%.

I have taken a very modest long position in the ZZZs to go to cash settlement.

Hey! Greg! The Z/G spread has come back to us quite nicely. I have been able to get most of them off my boat now and dumped three more this morning. The Z/G has treated me quite well since the end of July.

Best wishes,

dhm