packers really are having a little problem peddling all the product they are producing. I suppose you noticed they slipped substantially again yesterday. It appears to me that packers are maintaining their margins fairly well by cutting their bids almost as fast as the cut outs are falling.

The afternoon reports are pointing to another round of downward movement for both the Purchase Index and the CME Lean Hog Index. Generally the Purchase Index will turn up a day or two before the CME Index.

I sold a Feb cattle/hog spread yesterday at 83.10. I may get a trip out behind the wood shed on that one.

Best wishes,

dhm