8/23/16 was UP +0.08 to 67.03. Perhaps this is packers gathering up hogs to meet the holiday demand surge. The VVVs are now trading discount to the component by -6.86. Traders are convinced that packers are going to work hogs lower.

The six-day moving average carcass weight was steady at 207.07#. That is -2.28# year/year. Producers are continuing to stay current in their shipments. Bringing hogs to market at a lighter weight is holding pork production down. One a year to date basis +0.3% more hogs have been killed but -0.2% pork has been produced than last year.

Dewey, with producers being very current in their shipments and the kill since 6/1/16 being on the weak side of what the H&P report suggested, I'm not quite as bearish on the hog market as Dennis Smith. If the VVVs dip a tiny bit more, I'm going to get a little long.

Best wishes,

dhm