MURICO.com Forum

The CME Lean Hog Index component on the kill for -

12/11/17 was down -0.13 to 64.91. The ZZZs are trading diascount to the component by -1.03. The declining index has me thinking that the packers will be able to close that all right by cutting their bids so I am now flat the ZZZs. Might decide to go to cash settlement with a short.

The six-day moving average carcass weight dropped to 214.98#. Friday's big kill of heavy hogs made a lot of progress in moving out the heavies. And it surely took the cutouts down. Carcasses are still +3.12# yr/yr so there is probably still some back log of heavy hogs. Packer hogs are +1.30# heavier than non-packer hogs. Both packer and non-packer hogs were quite a bit lighter yesterday.

Treasury will auction a bunch of bonds at 1:00 est. Besides that, the FOMC is huddled together talking about interest rates. Traders have taken a little air out of bonds this morning.

Best wishes,

dhm