11/29/18 was down -0.16 and the model projects the component on yesterday's kill will change in the range of +0.05 to -0.25. Yesterday the component dipped -0.17 to 56.48. The ZZZs settled premium to the component by +2.24. My bias is that the ZZZs will end up giving back some of that premium so I am a tiny bit short the ZZZs.

Packers purchased 77.3% of the moving average daily purchases of total hogs and 92.5% on the index hogs. The light purchases yesterday may have meant producers were reluctant sellers for less money or it may have meant packers were not needing hogs. Carcass weights suggest there are an adequate number of hogs in producers barns so it is going to take firm demand to firm the component enough to keep the ZZZs at their current level for the next two weeks.

Still long the summer futures and continue to buy dips and sell rallies. I am being much too cautious in loading my boat on the dips.

Best wishes,

Doc