The final Purchase Index for - - -

12/11/14 was down -$0.75 and the model projects that the component on the 12-11-14 kill will drop between -0.25 and a -0.55. That means that most of the 0.72 Index to ZZZ futures "Gap" is going to be closed by the index dropping rather than the ZZZs tacking on a little. I suppose that is not very surprising considering the clobbering that cut outs took yesterday.

Next week I am going to have my work cut out for me dealing with the boat load of long GGGs I am going to have to deal with. Perhaps the market will let me spread some of them with short JJJs or some short GGG cattle. I picked up another short Feb cattle/hog spread this morning at 78.775 so that is helping a little.

I hope Dewey and I are right in thinking the GGGs will rally a little next week. That probably depends on demand for pork being firm which was not the case yesterday!

The settlement on the K/M hog spread last night was a little crazy. It made the equity run look mighty good but it surely won't stick today. Sometimes the market noise in the KKKs is deafening!!

Best wishes,