12/18/14 was way, way down at -1.43. Packers are really focused on getting their cost of product down and fixing their margin problem. The Hog Pricing Model projected it would be down but not this much.

The six-day moving average carcass weight firmed to 215.79# and most of the gains were from heavier packer hogs. Packer hogs made up a larger than usual percentage of the kill yesterday. Packers are bringing in good numbers of hogs and they are bigger hogs. For some reason they are finishing hogs rapidly and in good numbers.

I sold a Feb cattle/hog spread at 78.675 the got faint-hearted and covered it with just enough to pay commissions. I decided to wait for a higher price and go into the weekend with a weak portfolio.

Best wishes,

dhm