11-17-14 was up +0.65 to 88.51. Even with the dribble down in the ZZZs this morning, they are still premium to the component by +3.19. With the final Purchase Index this morning being up +$0.67, it appears that packers are bidding higher now. This really doesn't surprise me a whole lot because it appears that the supply of market ready hogs is tightening up a little.

The six-day moving average carcass weight dipped to 215.47# which is +3.12# yr/yr.

This is one of the indicators I am looking at that suggests the supply of market ready hogs may be less than expected based on the last H&P Report.

I'm still flat the ZZZs as out rights although I do have a few short Z/G spreads. Since the spread moved to up to 7.25 on 6/30/14, I have scaled in and out of a bunch of the Z/G spreads always hanging onto a couple of shorts. It has been a nice trade for me.

I'm now scaling in and out of the short Feb Cattle/Hog spread. It has been working well for me and now I am watching to see if I am going to be able to cover the shorts with a profit or will be stopped out with a loss.

Best wishes,

dhm