12/7/17 was DOWN -0.07 to 65.44. The ZZZs are now trading discount to the component by -1.54. Packers can lower the index enough to close the gap but will they? I lightened my load of long ZZZs by one this morning. I was able to get a few Z/G spreads on and off my boat this morning. I always like it when I can get a spread on and off in the same day.

The six-day moving average carcass weight firmed to 215.36#. That is +2.98# yr/yr. This suggests that producers are a bit behind in their shipments. Holiday demand may keep he index up until the ZZZs expire but there is risk that the component will falter when the holiday demand evaporates.

Best wishes,

dhm