10/5/16 was down -0.34 to 54.20. Now we are looking at a "Gap" of -4.59 with the VVVs being at a discount to the component. It appears that traders have seen the error in their ways and are making a rather rapid correction. Sometimes these "Gap" closing corrections make it all the way to limit but it does not look like that will happen today but it is the better part of a limit move.

The 6-day moving average carcass weight moved up to 210.58# today. That is -0.52# yr/yr. Both packer and non-packer hogs were heavier by aboout 1/3# today. As usual the index hogs weigh a little less at 209.40#. Packer hogs continue to come to market a little heavier than the non-packer hogs. Today they were 0.54# heavier.

I'm still long a few VVVs but not as many as I was. It is generally a good idea take some profits to the bank when they show up. Sometimes holding out for too much end yoiu end up getting nothing.

Best wishes,.
dhm