11/14/18 was down -0.51 and the model projects that the component on yesterday's kill will drop between -0.50 and -0.80. The strong down trend seems to be continuing and the weakness of the cutouts is a clear hint that the downtrend will continue for another day or two. The ZZZs settled discount to the component by -3.35. The model calculates that it will take and average daily drop of -0.155 to close the "Gap". Because of the weakness in the cutouts and the strong downtrend that seems to be in place, I will stay with the short ZZZs I have piled onto my boat.

Even though packers were bidding lower yesterday, they were able to purchase 92.7% of the moving average daily purchases of total hogs and 98.1% on the index hogs.

The summer futures did not dip low enough yesterday to tempt me to add to my longs. Maybe it will happen today.

Best wishes,

dhm