The CME Lean Hog Index component on the kill for -

12/12/18 was down -0.28 to 55.23. The ZZZs are now trading discount to the component by -0.55 with two more days of data to get us to cash settlement. The ZZZs seem to be priced about right. The exploding Z/G spread today enabled me to unload all of those long spreads with only a modest hair cut. A couple of days ago things looked rather bleak.

The 6-day moving average carcass weight was steady at 214.00# and the index hogs were a bit lighter at 213.75#. Packer hogs are heavier than the non-packer hogs by +3.55#. Packer hogs were + 1/4# and non-packer hogs were -1/4#. Packers are continuing to integrate vertically. They are now shipping about 2.0% more of the kill mix than they were producing one-year ago.

Today I bought three more summer futures. Now I will go to work to get them off my boat. The calendar spreads were active today.

Best wishes,