9/9/16 WAS down -0.19 to 64.00. The surge in the VVVs today had closed the "Gap" to -2.80 with the VVVs discounted to the component. Traders seem to have decided that packers are going to keep their bids up fairly well as we move into the higher kill season. This has to be making Dewey's day.

The six-day moving average carcass weight moved up to 209.16#. That is only -1.05# year over year. It appears that hogs really put on the weight over the holiday weekend. Packers killed a lot of hogs on Saturday at 363K. Index hogs were also heavier at 208.90#,

Being short the V/Z spreads has turned out to be a painful day today. And I suppose the spread could go higher still. On 6/14/16 it moved up to 8.175.

Best wishes,

dhm