was steady today at 215.37# with packer hogs being a bit lighter and non-packer hogs heavier. Relative to last year, hogs are now only 2.73# heavier than one-year ago. As the price of hogs has been falling, producers have really been hurrying a lot of hogs to market. My guess is that producers did not have quite as many hogs as the USDA reported in the last H&P report and we will not see a sell-off any where near like the 2.79 point drop in the CME Index that we saw last year from this time until we get to cash settlement.

For sometime I have been saying that the ZZZs really should not be at a premium to the GGGs. Well, today it happened, the ZZZs dipped below the GGGs and I hurried to the bank with the profits from two of the spreads. I think there is more to come so I am holding onto a bunch more of the short Z/G spreads.

Best wishes,

dhm