8/16/17 was down -0.47 to 83.47. The drop that the VVVs have experienced this morning has opened the "Gap" to -16.47 with the VVVs at a discount to the component. Last year on this date the Gap" was only -6.35. The damage being done to my margin was getting too much so I decided to unload the long VVV even though the "Gap" seems to be out of harmony with reality. I started relying on the model to give me guidance on the VVVs too soon.

The six-day moving average carcass weight firmed to 207.24#. That is +0.54# year/year. This is not the time of the year one would expect the carcass weights to be moving up nor would one expect carcass weights to climb above last year's weights. Perhaps producers are getting a bit behind in their shipments. This is not the time of the year to do that since the number of hogs available for slaughter always seems to move up this time of the year.

Best wishes,

dhm