9-26-14 was up 0.84 to 108.71. That has the VVVs discounted to cash by 2.39 with 11 more days until we get to cash settlement. With the USDA telling us that the 180# and up hogs are down 5.66% from last year, packers may not have the luxury of lowering their bid prices much until after we reach cash settlement.

The kill since 9-1-14 seems to be validating the fact that the 180# and up hog inventory is down about 5.66% year/year.

The six-day moving average carcass weight jumped to 213.34# today and it was primarily the packer hogs that caused the jump. On a year/year basis the difference was steady at +7.57#.

The spread trades I have on are treating me well today. I was concerned that I might get a trip out behind the wood shed but it didn't happen.

Best wishes,

dhm