9/14/15 was down -$0.27 and the model projects that the CME Lean Hog Index component on the 9-14-15 kill will drop between -0.35 and -0.65. As is so often the case, the index is continuing to drift lower following the Labor Day holiday. It doesn't seem to me that there is a lot of correlation between the Mid-September weakness and the cash settlement index for the VVVs. So I am left grasping for any bit of data that might give me a clue about where the Index will be come cash settlement.

I'm looking at a nice early morning bounce but I think it happened too early for ITZ to get his fishing gear working and not enough bounce for Dewey to unravel any of his trades since he is wanting to add more. The bounce happened so fast that I interpreted it as stops being run and sold one at 68.125. Now to see if I get to make a trip to the bank or have my feet held to the fire.

The firm kill yesterday and the heavier carcass weights has me thinkiing that producers have ample numbers of hogs to sell in the near term.

Best wishes,

dhm