The CME Lean Hog Index component on the kill for -

10/29/19 down -0.61 to 63.13. The ZZZs are now trading premium to the component by +1.92. "The Market" seems to think the packers will be selling pork well and bidding higher for hogs. Looking at the potential world pork supply/demand dynamics, that is exactly the way things should happen. A lot depends on getting to an understanding relative to the trade war going on between the US and China. The model projects that packers gross margins on Index hogs has now risen to $28.87/Index hog. That suggests to me that packers are not under a lot of pressure to be cutting their bid prices on INdex hogs today.

The 6-day moving average carcass weight firmed to 213.79#. That is +2.08# yr/yr. Index hogs were down a little at 213.85#. Packer hogs are lighter than non-packer hogs by -0.39#. I am anxious to see the total kill for this week to see i f the trend of pulling hogs forward a little continues.

Best wishes,