9/6/17 was down -$0.31 and the model projects that the component on yesterday;s kill will drop between -0.50 and -0.80. The VVVs settled discount to the component by -5.94. With their lower bids, packers only purchased 81.0% of the moving average daily purchases of index hogs and I wonder, "Why such a low purchase?"

The rate of decline in the index and the falling cutouts together with heavier carcasses has me thinking the the index may fall enough to push the VVVs down another point or two.

I added a couple of short VVVs yesterday.

Best wishes,

dhm