8/15/17 was only down 0.17 to 83.94. The sell-off in the VVVs has opened the "Gap" to 15.74 with the VVVs at a discount to the component.

The 6-day moving average carcass weight was a little weak at 207.03#. That is +0.26# yr/yr. Producers may be getting a bit behind in their shipments and this is not the time of the year to do that. Packers are moving their hogs out and their carcass weights are -0.41# under the non=packer hogs. Index hogs are at 207.13#.

This morning I said that I thought traders were going to be jumping at shadows as they try to figure out how the "Gap" will close. "Jumping at shadows" can cause a lot of volatility and we are seeing it today. I was anticipating that short would be able to gather in some profits which they could have done today if they have not been short too long. I continue to doubt that the entire "Gap" will be closed by the Index collapsing so I added to my long VVVs today. I may have to go sit in the corner with my dunce cap on!! I will say this, "Packers were bidding much higher for hogs this morning than I was expecting."

Now to see what happens to the cutouts.

Best wishes,

dhm