The CME component on the kill for - - -

12/9/14 was up 0.19 to 88.61 putting the ZZZs at a discount of 1.11 to the component. With packers keeping their bids firm, I'm suspecting the "Gap" will mostly close with the ZZZs adding to the mild rally we are seeing this morning. A small boat came alongside this morning and I off-load part of the short Z/G spread. I'm happy to not have my boat so laden down with Z/G spreads. I'm also happy to have a little money back in the bank.

The six-day moving average carcass weight has eased to 215.99# which is +2.52# yr/yr. Both packer and non-packer hogs were a bit lighter. I don't think the change was enough to suggest that producers are getting super-current in their shipments, but they do seem to be staying quite current.

I'm back at shorting the Feb Cattle/Hog spread again. At this price level I am a bit cautious and am only dealing with onezy and twozy. If they pop back above 80.50 I'll try a handful.

Best wishes,