12/14/17 down -0.73 to 63.75. That represents the other half of the cash settlement index for the ZZZs giving us a cash settlement index of 64.11. Thus it turned out to be very little risk or reward in going to cash settlement just as the model was suggesting. The GGGs are now trading premium to the component by +3.90. Considering the uncertainty between supply and demand, there is going to be plenty of fireworks between now and when the GGGs go to cash settlement, of that I am quite sure.

The 6-day moving average carcass weight was steady this morning at 214.71#. That is +3.24# year over year. Perhaps the heavier carcass weights this year is a continuation of packers wanting to kill heavier and heavier hogs rather than producers being behind in their shipments. Packer hogs were +1.21# heavier than non-packer hogs.

The calendar spreads are not very active today. I have a boat load but have order working to pile 25 more on if price action is favorable. I did take profits on one long G/J spread this morning.

Best wishes,

dhm