12/13/17 was -$0.83 and the model projects that the component on yesterday's kill will drop between -0.30 and -0.60. The ZZZs are trading discount to the component by -0.85. Cutouts took a terrible beating yesterday so my guess is that packers are going to be a bit grouchy in their bidding today and will very likely drop the index down to where the ZZZs are and maybe even a bit lower. I'm wanating to go to cash settlement short the ZZZs but at this point i am flat.

Packers purchased 87.6% of the moving average of daily purchases of total hogs and 98.8% on the index hogs.

Best wishes,

dhm