8/25/16 was down -0.30 to 66.75. The strength in the VVVs this morning has cut the "Gap" to -6.03 with the VVVs being at a discount to the component.

The six-day moving average carcass weight firmed to 207.76# this morning. That's -1.53# year over year. Both packer and non-packer hogs were heavier while index hogs were steady at 207.05#.

The near limit move we saw this morning often occurs when there is a significant "Gap" when the second month becomes the front month. The fact remains that we are moving into that time of the year when the kill rate increases both because of larger spring farrowings and because cool weather and fresh corn causes hogs to finish faster.

Best wishes,

dhm