11/24/14 was DOWN -0.04 to 88.72. This is the second day that packers have opted to kill cheap hogs and left the model with a black-eye! Traders have responded by letting a bunch of air out of the ZZZs and the gap has now closed to 1.76 with the ZZZs still premium to the index. Based on the USDA reports, it appears that packers still have some pricey hogs purchased that are yet to come to market so there is a fair chance that the CME Index might give us a little "Pop" in the next day or two.

The GGG cattle/Hog spread is all over the place today and it is being driven by the action in the hog market. I covered a short spread at 78.525 and am now short again at 80.40. It is now plain to see that I should have covered both of my short spreads. It is not possible to know what the markets will do. The best you can hope for is to make a guess and if right for a while, grab some bucks and head for the bank.

Best wishes,

dhm