10-24-14 was down -$190 and the model projects that the CME Index component on the 10-24-14 kill will drop between -1.45 and -1.75. I thought this might result in a closing the "Gap" a bit but traders are beating the ZZZs down enough to keep the "Gap" quite wide still. It may close a little when the 201 report comes out and we see how much the component dropped.

Even though packers were bidding lower on Friday, they were able to purchase quite strong numbers @ 107.4% of the moving average daily purchases. In terms of total numbers, they purchased more index hogs (529K) than they have purchased since 1/24/14.

Producers now seem to be plenty anxious to sell hogs.

I know I would be if I had a barn full of market ready or near market ready hogs and was watching the price erode away.

I scalped out of half of my short ZZZs. It looks like I should have gone flat.

Best wishes,

dhm