The CME Lean Hog Index component on the kill for -

12/13/18 was down -0.10 to 55.13.It appears that the ZZZs have settled discount to the component by -0.18. I am going to cash settlement short a couple of ZZZs from 57.10 but they are part of a rather large, complex, option trade so it is not like going to cash settlement with out-right shorts.

The 6-day moving average carcass weight firmed to 214.15#. That is -0.56# yr/yr. Index hogs are a bit lighter at 213.95#. Packer hogs are heavier than non-packer hogs by +3.39#. Packers are continuing to own progressively larger and larger percentage of the daily kill so packers are continuing to vertically expand their operations. I wonder how far this vertical integration is going to go. It seems to be picking up speed now.

I have my boat just about loaded with summer futures. "The Market" almost gave me a chance to sell a couple of QQQs today but the stalled out. Maybe Monday.

Best wishes,