8/29/17 was down -0.86 to 74.18. That was not quite as much as the model projected. The "Gap" now stands at -13.80 with the VVVs at a discount to the component. Over the past 11-days the component has declined an average of -84.6 cents per day. If that rate of decline continues, the model projectss that the cash settlement index for the VVVs will be 48.6. In order to close the "Gap" he model calculates that the component will need to shed an average of 47.0 cents per day. That continues to be quite a hair cut for the index.

The six-day moving average carcass weight firmed to 208.41@. That is +1.01# year over year. It is not clear to me whether packers have slowed their chain speeds or whether there are lots of hogs in producers barns that are gaining well. At any rate, producers seem to be well supplied with hogs.

Ka!! Ching!! Finally got a long scalping trade to work.

Ka!! Ching!! Ka!! Ching!! Unloaded a pair of long G/J spreads and made a trip to the bank. Have plenty more on my boat.

Best wishes,

dhm