8/24/15 was down -$0.07 and the model projects that the CME Lean Hog Index component on the 8/24/15 kill will be nearly unchanged with the change most likely falling in the range of +0.15 to -0.15. Packers made a solid purchase yesterday at 97.4% of the moving average daily purchases.

Yesterday the swine scheduled for delivery report showed that packers have quite a few more hogs bought than they had on this date last year and they also have quite a few more than would seem to be indicated by the last H&P report. The data may be telling us that producers have good numbers in their barns - perhaps a few more than suggested by the last H&P report.

The futures/component "Gap" has now closed to -12.01 with the VVVs discounted to the index. It appears that traders woke up yesterday and said,"Hey! That "Gap" is just too wide. We better get it closed.!"

And they are.

As is so oftern the case, I don't know where hogs are headed. I have sold a couple of V/Z spreads this morning at -4.30. That seems a little wide at the moment.

Best wishes,

dhm