8/25/16 was down -$0.09 and the model projects that the component on yesterday's kill will change in the range of +0.05 to -0.25 which is actually fairly steady. There is a good chance that the Labor Day demand surge is keeping the Purchase Index a bit firm this week. If that is the case, there is some risk that packers will be bidding a bit lower when the holiday demand passes.

The last cold storage report showed that bellies are backing up in the freezers with 114% year over year increase. With poultry up 7% year there may be competition for the consumer's meat dollar.

It was not a lot of fun being long the VVVs yesterday. I'm flat the VVVs now and will see if I can work the calendar spreads a little today. I have added a few over the past few days and am now ready to sell. All I need is some buyers.

Best wishes,

dhm