11/13/18 was down -0.27 to 60.35. The ZZZs settled discount to the component by -3.35. The model calculates the component needs to drop an average of -0.15 per day to close the "Gap". The component has dropped and average of -0.53 per day over the past seven-days. I suppose the strength of the downtrend could be sufficient to not only close the "Gap" but to actually push the ZZZs a bit lower,

The six-day moving average carcass weight firmed to 213.09#. That is +0.41# yr/yr. Packer hogs are heavier than the non-packer hogs by +2.46#. Packers seem to have fallen behind in their shipments and now have some heavier hogs to get marketed. As packers get current in their shipments, it is pushing the percentage pf packer hogs in the kill mix to quite high percentages suggesting that packers have expanded their production.

I am still short the ZZZs and long the summer futures.

Best wishes,

dhm