9/14/17 dropped another -$1.09 and the model projects that the component on yesterday's kill will continue crashing this time by -0.80 to -1.10. Packers are really getting the job done in terms of breaking the price of hogs. When you look at the way the price of bellies have dropped, it is easy to understand why. With their lower bids, packers were able to purchase 87.1% of the moving average of total purchases and 88.3% in Index hogs.

Carcass weights have been climbing, kill is coming in below projections, yesterday cutouts slumped below this same date one-year ago and yesterday packers dropped the Purchasing Index by -$1.09. In view of the fact that the kill generally goes up in the fall, it is difficult to construct a bullish scenario for hogs at the current time.

Still short VVVs and ZZZs.

And just started on my second bottle of Tums.

Best wishes,

dhm