10/2/15 was up 0.34 to 73.53. The VVVs are now discounted to the component by -0.18 and that is essentially at parity with each other. The index appears to be on an up-trend causing me to think that the Index will push the VVVs up a little. Now there was a little weakness in the product on Friday especially in the bellies. The fact remains that packers have to sell the product to have the where-with to bid hogs higher. So far their margins are all right so I'm still thinking "Up" a little for the VVVs as we head to cash settlement.

The 6-day moving average carcass weight came in at 210.57#. That is -3.02# yr/yr. This is the time of the year when weather is cool, corn is fresh and highly palatable for hogs so we can expect the carcass weights to hold firm. I don't think that will suggest producers are getting behind in their shipments - just that hogs are growing well.

I have been able to pull off a couple of scalps from the long side and now have one less short V/Z spread that I ended up with on Friday and a little more money in the bank.

I'm trying to sell the spread again at 7.925. If it goes down instead of up, I have plenty more short spreads to cover.

Best wishes,

dhm