11/13/18 was down -0.96 and the model projects the component on yesterday's kill will plunge between -0.60 and -0.90. We seem to be in a downtrend now with both the Purchase Index and the CME Lean Hog Index headed lower. The ZZZs are trading at a discount of -3.55 to the component. The only thing I know for sure is that "Gap" will close on 12/14/18. Because we are in a strong downtrend, my suspicion is that most of the "Gap" will be closed by the index dropping.

With their lower bids, packers purchased 100.1% of the moving average of daily purchases of total hogs and 93.8% on the index hogs.

Still short the ZZZs and long the summer futures. I am wanting to buy more summer futures but they need to dip more than they have lately to entice me to load my boat.

Best wishes,

dhm