The CME Lean Hog Index component on the kill for -

11/21/18 was down -0.08 to 57.80. The ZZZs are trading premium to the component by +1.15.

The six-day moving average carcass weight moved up to 213.12#. That is -0.44# yr/yr. Index hogs were also heavier at 211.71#. Packer hogs were heavier than non-packer hogs by 2.78# having moved up 1/3# on the Wednesday kill. It generally happens this time of the year when the weather gets cooler and fresh corn begins to fill the feeders that hogs gain faster. The thing that is different this year is the fact that packers are providing a higher percentage of the kill-mix. The percentage of packer-hogs in the kill over the past 20-days has been 34.31% but for the past 6-day it has been up at 35.2%. Not only are packers shipping a lot of hogs but they are heavier than the non-packer hogs by a substantial amount. We are going to continue to see fairly large numbers of packer hogs coming to market for quite a while!! Packers made the decision to expand production months ago. They may be being bailed out by the ASF virus. Otherwise their increased production might have been problematic.

Still long the summer futures and took profits on an NNN pig I bought last week and am ready to pile more summer futures on my boat if they dip but am now HODLing the ones I have left.

Best wishes,