cut outs report show a drop of another -2.29. On a week day when a report comes out like that it often causes traders to take a few tics off the ZZZs. Then the afternoon purchase numbers came out and the model gave an early projection of down -$1.42 for the Purchase Index and a down -1.40 to -1.70 for the CME Index component on Friday's kill. On Monday when the 201 report comes out, we might see the "Gap" between the component and the ZZZs close to something like 7.5.

It appears that packers are having a little trouble selling the product so they will be wanting to get their costs down.

When the final kill numbers came in, they were a little on the weak side. I don't know whether it was packers not wanting more product to peddle or whether producers were running short of hogs. The six-day moving average carcass weight was up a little so it just might be that packer slowed down the chain speed a little.

I kept scalping from the short side on Friday and ended the day short the ZZZs. Now to see whether or not you pick my pockets come Monday.

Best wishes,

dhm