12/4/19 was up +1.86 and the model projects the component on yestereday's kill will be up between +0.50 and +0.80.

Packers were really wanting hogs yesterday and the did not find them. They only purchased 78.6% of the moving average daily purchases of total hogs and 78.7% on the INdex hogs with there much higher bids. It looks to me like now is the time when retailers are going to be wanting to fill their cases for the holiday demand surge. Packers appear to have saved back some of their hogs so they can meet that demand with their own hogs never-the-less I don't feel a need to put on a bear skin coat - in fact I added another long ZZZ pig when they dipped this morning.

With the ZZZs trading premium to the component by +3.29, packers are will need to sweeten their bids by quite a bit just to close that "Gap". I just covered a short V/Z calendar spread and made a trip to the bank with a little Christmas bonus.

Best wishes,

Doc