9/14/16 was down -0.47 to 63.36. The "Gap" is still plenty wide with the VVVs being at a discount to the component. Traders are strongly convinced that packers are going to keep right on dropping their bids. And they just might.

One of the reasons I say that is because the 6-day moving average carcass weight moved up to 209.31#. That is only -0.93# year/year. Yesterday I was thinking that packers had made up for the no-kill holiday. Now I'm thinking that hogs are starting to finish faster with cooler weather and when fresh corn hits it will happen even faster. Both packer hogs and non-packer hogs were heaavier but packer hogs jumped somewhat more than the non-packer hogs. Index hogs were also heavier at 208.84#.

Scalping the VVVs is good business today and spreads are very active with several V/Z spreads making the round trip which is always nice but doesn't happen often.

Best wishes,

dhm