9/1/16 was DOWN -0.55 TO 64.99. The "Gap" has now closed to -1.94 with the VVVs being at a discount to the component. That is not much of a "Gap" especially with the strong historical tendency for the kill rate to go up as the weather gets cools and fresh corn begins to fill the hog feeders.

The six-day moving average carcass weight moved up to 207.97#. That is only -1.01# year over year. Packer hogs are gaining in weight relative to the other hogs. Packer hogs are now +0.91# year/year year. The rising carcass weight does not seem to be constructive to me. Index hogs are mildly lighter at 206.78#.

Short is still not smart. And I'm still short the VVVs.

Best wishes,

dhm