9/1/17 was down -0.89 to 70.97. The "Gap" is now closed to -7.14 with the VVVs being discounted to the component. The component has dropped an average of 89.4 cents per day for the past 14-days. That's a lot of "Hair cut" that producers are taking. The model now calculates that it will only take an average daily drop of 29.5 cents per day to close the "Gap".

The 6-day moving average carcass weight firmed to 209.01#. That's +1.18# year over year. Packer hogs were heavier by +0.11# but non packer hogs were up 0.82#. That is a significant jump on a 6-day moving average. Packer hogs are now under non-packer hogs by -0.22#. Packer kill was very low at 26.61% of the kill. It usually runs 31% to 32%. If
the escalating carcass weights are signaling that producers are getting behind in their shipments. we are going to need some demand to show up to carry off all the pork.

Ka!! Ching!! Just made a quick trip to the bank to deposit the profits from a long K/M spread. My two favorite spread trades are the long K/M and long Q/V spreads.

Best wishes,

dhm