12/2/14 was up 0.12 to 88.70. With the ZZZs being a little weak, the "Gap" has now closed to 0.60 with the ZZZs being premium to the component. We are getting close enough to expiration for the CME Index to be the primary driver of the ZZZs. Never-the-less, traders will be over-taken by emotions from time to time and excessive moves will most likely continue to happen even though the ZZZs are nearing cash settlement.

The six-day moving average carcass weight moved up to 216.03# this morning and it was mostly packer hogs that contributed to the jump. That is now 2.62# yr/yr. Not only were packer hogs heavier, but the percentage of packer hogs killed yesterday moved up to 34.58%. The percentage usually does not run much above 33%. If packers had a significant piglet loss due to the PED virus, it appears that the got their sows settled on the next cycle and they have a significant number of market hogs now.

Spreads have been treating me well today. I can't help but wonder if there are other patrons of this forum who have joined me in selling the Dec/Feb lean hog spread? When the spread put in a rally this morning, I sold a handful and now I am running back and forth to the bank to make my deposits.

Best wishes,

dhm