12/3/14 was down -$0.23. The model projects that the change in the component on the 12-3-14 kill will be between +0.15 and -0.15. That is essentially unchanged and it all depends on which batch of hogs packers chose to kill, heavies or lighter ones.

Packers made a rather average purchase yesterday at 97.9% of the moving average daily purchases. With carcasses gaining in weight and cutouts showing some weakness, the dynamics don't seem right for much of a rally in the ZZZs unless cutouts move up for the holidays.

The Z/G spread is showing some strength this morning. Yesterday I was able to scale into several short Z/G and turn them into green. This left me with a few empty slots that I have filled by selling some this morning. Now to see if the market is going to let me off the hook or punish me a little.

Selling the Z/G spread has worked well so it may be the markets turn to take a little back.

Best wishes,

dhm