9/21/16 was down -$1.10 and the model projects the component on yesterday's kill will fall between -0.60 and -0.90. The down-trend is still alive and well. Packers were able to round-up 87.3% of their daily purchases with these lower bids. Producers seem to be very willing sellers.

The "Gap" settled at -6.28 with the futures being at a discount to the component. That's quite a "Gap" but packers are going to work on it in a fairly aggressive manner. I choose not to trade the "Gap" this time and that might be a mistake. Oft time when there is a substantial "Gap" emotions start to ignite and we get a limit or near-limit move to narrow the "Gap" and then we start to move in lock-step with the component. That could surely happen this time.

Still short some VVVs.

Best wishes,

dhm