8/2/16 was down -$0.39 and the model projects that the component on yesterday's kill will drop between -0.40 and -0.70. Packers made a solid purchase yesterday at 101.7% of the moving average daily purchases. Producers are moving hogs to market at a rapid enough clip to keep the carcass weights well below where they were last year.

The weak cutouts and a kill rate higher than projected from the H&P report has me in a bearish mindset and it looks like I get there too late and now we are making a bounce. I may have to cover the short VVVs and take my lumps.

Best wishes,

dhm