8/30/16 was down -$0.55 and the model projects that the component on yesterday's kill will drop between -0.25 and -0.55. Day-after-day packers just keep lowering their bid prices.

And with good reason.

They are having a little trouble selling the product. For instance, bellies are down 43% since 7/26/16.

That's some hair cut.

With their lower bids yesterday, packer were able to purchase 85.0% of the moving average daily purchases.

The VVVs settled discount to the component last night by -4.06. Traders continue to think more is coming of packers' bids. If packers don't scare up demand from some place, the traders are probably right.

I'm still cautiously short the VVVs.

Best wishes,

dhm