10-22-14 was DOWN 2.13 TO 101.329. That might have made a big dent in the big discount that the ZZZs are carrying to the Index but the ZZZs just went right head and continued their plunge downward. Now we have the ZZZss discounted to the component by -12.70. That is still a big discount.

One year ago on this date the index was 91.40 and by the time the ZZZ3s expired it had dribbled on down to 80.94. Looking at the way cut outs are crumbling, packers may have to keep on lowering their bids to get the product moved. I believe we have a cold storage report tomorrow that may tell us something.

The six-day moving average carcass weight moved up to 214.65# and it was mostly packer hogs that were heavier. It is +4.98# yr/yr.

Scalping ZZZs is good today but not as good as yesterday.

Best wishes,

dhm