9/12/16 was down -0.16 to 63.84. That is not quite as much weakness as the model projected but I can't quibble over the modest variance considering how very close it so often pegs the change. The "Gap" has now closed to -2.67 with the VVVs being discounted to the component. I continue to suspect the "Gap" will mostly be closed by the packers shaving a little more and a little more off thie bids - especially if the cutouts continue to dribble a little lower like they did yesterday.

It looks like the VVVs and ZZZs are trying to lock limit down today.

The six-day moving average carcass weight firmed a little to 209.10#. That is only -0.94# yr/yr. Lighter carcasses have been holding down the year/year increase in pork production but if carcasses are going to get as heavy as they were last year, pork production will go up further burdening an already mildly over-produced market.

Piled another short V/Z spread back onto my boat. I will be happy to take on another one or two if the price is right or I have plenty to put-off onto someone else if they want them badly enough.

Best wishes,

dhm