8/28/17 was down -0.98 and the model projects that the component on yesterday's kill will drop between -0.85 and -1.15. Hogs are trending lower in a powerful way! The VVVs are now discounted to the component by -14.50. The model calculates that it will take an average daily drop of -0.45 to close that "Gap" at cash settlement. Bellies continued to collapse yesterday pulling the cutouts down by -0.31 to 86.10. One year ago they were at 75.71.

Carcass weights are continuing their slow climb suggesting that producers are getting behind in their shipments. NOT GOOD!!

The big "Gap" has me almost afraid to touch the VVVs but I am just a tiny bit short.

Best wishes,,

dhm