10/11/16 was U P +0.05 to 52.81. That is not much of a jump but it represents a MAJOR turning to the strong down trend we have been on for weeks and weeks. I am beginning to think that the high kill rate we have seen for several weeks has been producers liquidating their inventory of market hogs.

The six-day moving average carcass weight has now to 210.97#. That is up a bit from last week but it is -0.32# yr/yr. Both packer and on-packer hogs were a little heavier but not by much and heavier hogs this time of the year is kind'a expected with the cooler weather and fresh corn. Index hogs were lighter at 209.48#.

The jump in the VVVs today has closed the "Gap" to -0.59 with the VVVs still showing a very mild discount to the CME index component.
I have decided to get long a couple of VVVs.

Best wishes,

dhm