10-7-14 WAS up $0.02 and the model projects that the component on the 10-7-14 kill will rise between +0.05 and +0.35. The kill so far this week is a bit stronger than projected from the last H&P report but the 6-day moving average carcass weight is showing a little weakness. It just might be that producers are running hogs to market at a fairly brick clip thinking the the price might ease a little.

The VVVs are discounted to the CME Index component by 2.38 with five trading days before we get to cash settlement.

Packers did not get a particularly strong purchase yesterday at 91.5% of the moving average daily purchases.

With cutouts giving packers an attractive margin, there is still some incentive for them to keep the hogs moving to their plants.

It just might be that the market dynamics are in place to keep the CME Index firm until the VVVs go to cash settlement on Tuesday.

I bought another VVV pig this morning at 107.275.

Best wishes,

dhm