8/27/14 kill was down -1.32 to 98.22. My screen now shows that the VVVs are discounted to the Index by 3.05. That's a number that can be closed in one-day. This means that the daily change in the index will now begin to have more influence on the VVVs. Traders will still do what traders do because they are not hobbled by the fundamentals so we will see the volatility continue while the VVVs move toward cash settlement.

The 6-day moving average carcass weight has now moved up to 212.36#. That's +8.79# yr/yr. Yesterday packer hogs were mildly heavier and non-packer hogs were lighter. At this point these changes are not sufficient to alter the trend for packer hogs to get lighter relative to non-packer hogs.

I was stopped out of the short VVV pig but still have a very mildly bearish bias that I don't dare act on.

Spreads are not active today.

Best wishes,

dhm