11/6/14 was down -$0.10 and the model projects that the CME Index component on the 11/6/14 kill will drop between -0.35 and -0.65. With the Purchase Index being down, there is a good chance that the component will be down on the next two kill-days. Of course packers have some flexibility on when they kill their inventory of higher or lower priced hogs that they have purchased the last 14 days.

The ZZZs have now gone premium to
Wednesday's component by +1.08. That premium should increase when we get yesterday's component. Obviously traders are thinking that either the supply of hogs is going to tighten up or that demand is going to move up as we move into the holiday season. I suppose a little of both could happen.

Packers made a fairly good purchase yesterday at 92.7% of the moving average daily purchases. The number of scheduled hogs yesterday was good at +37K over the same day last week.

The short ZZZ I carried over last night is doing me no good today.

Best wishes,

dhm