9/6/17 was down -0.24 to 69.26. The sell-off in the VVVs has opened the "Gap" to -7.70 with the VVVs being discounted to the component. I thought the falling index might drop the VVVs a point or two but I didn't expect it to come so quickly. Selling more VVVs yesterday worked out all right for me. There are still 26-data days to get us to cash settlement. A lot can happen in that time period.

The 6-day moving average carcass weight continued its upward march rising to 209.86#. That is +1.75# yr/yr. Producers seem to be getting further and further behind in their shipments. NOT GOOD! Both packer and non-packer hogs were about 1/2# heavier. Of course part of that is related to the no-kill Monday but I think there is more going on here than that. I just smacks of hogs being backed-up. Index hogs were also heavier at 209.77#.

I hope you are keeping your producers well hedged, ITZ.

Still short the VVVs and still talking hogs much better than I am trading them. I should have sold a dozen VVVs yesterday if I had the spine to trade what the data seems to be telling me.

Best wishes,

dhm