9/11/17 was down 0.51 to 67.28. The VVVs are now trading discount to the component by -7.36. That is still quite a "Gap" with 23-days to close. On average over the past 19-days the component has dropped -86.5 cents. The model projects that the component will need to drop an average of 33.4 cents per day to close the "Gap". There is still a lot of music left to be played in this "Gap" closing dance.

The six-day carcass weight eased to 211.02# but that is still +1.77# over the same date last year. I just can't get it out of my mind that producers are getting behind in their shipments. As those heavy hogs lounge around in producers' barns, they get heavier and heavier. Shortly weather will cool, fresh corn will start to flow and hogs will be finishing like gang-busters.

This is not a good time for producers to be getting behind in their shipments!

Packers killed a larger-than-usual number of their hogs yesterday. They know when it is time to un-load.

Sold a few more VVVs today and scalped a couple back off. Also sold a handful of the 63 calls.

Best wishes,

dhm

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