couple of long V/Z spreads off my boat and a couple of G/J spreads. Now I' back in either the buying or selling more mode.

The pre-opening bids are saying we could see another round of short coverings this morning. The firm kill and the modest demand for product does not seem to me that it should be driving the VVVs higher but that is what we seem to be getting. On average over the past 8-years from this date until the VVVs expire, the index has lost 3.81. During that period the biggest loss was -18.34 in 2008 and the biggest gain was 10.68 in 2014.

With the VVVs having settled at a discount of -5.43 to the component, traders are expecting a greater drop in the index than we have seen on average for the past eight years.

Historicals don't rule; it is the supply demand factors here and now that will determine where we go. Considering the soft demand, I'm concerned that when the weather cools and fresh corn begins to run. compensatory growth will produce enough pork to somewhat over-whelm demand. That is what has happened on average over the past eight-years.

Best wishes,

dhm