8/26/16 dipped by -0.25 to 66.50. With the VVVs being firm, the "Gap'' is now closed to -5.08 with the VVVs being discounted to the component. Traders may have closed the "Gap" to much if there are as many hogs in the pipeline as USDA projected and demand is as weak as it seems to be.

The six-day moving average carcass weight inched up to 207.87#. That is only -1.35 year/year. If this rising carcass weight indicates that producers are slipping a little, tiny bit in their shipments, it could be a problem as the weather cools and fresh corns begins to show up in the feeders. Index hogs are a little lighter at 207.26# but their weight has also been climbing a little. Packers have done a good job of getting current in their shipments. Packer hogs are now -0.09# under the non-packer hogs. That's not much but at one point the were more than 3.5# heavier.

I'm short the VVVs and the market is not helping a short position much today although scalping has been good.

Best wishes,

dhh