10/13/15 was up 0.10 to 74.99 and that represents 50% of the cash settlement index for the VVVs. With the VVVs being mildly premium to the component, going to cash settlement with shorts appears to be better than going with longs but a couple of days ago I strategically decided against going to cash settlement this time around. The VVVs and the V/Z spreads treated me all right this fall.

The six-day moving average carcass weight firmed to 211.29#. That is -2.52# Yr/Yr. Packer hogs are still running four and a half pounds heavier than non-packer hogs. This suggests that packers are still plenty happy with heavy hogs. They are more efficient to process but I think something is lost in the feed conversion of heavy hogs.

Best wishes,

dhm