9/28/17 was down -0.72 to 54.49. During the past 32-days the component has dropped an average of 90.6 cents per day. The VVVs are now trading premium to the component by +1.36 and the ZZZs have moved premium by +6.46. "The Market" is clearly telling us that it thinks the "Valley" has been posted to the CME Lean Hog Index for this Hog Cycle or if it hasn't it will be by the time the VVVs expire and it will have made a move back up to the 55.875 level from the 54.49 where it came in today.

The 6-day moving average carcass weight was steady at 211.03#. That is +0.91# year/year. Packer hogs were also steady at 209.97#. Packer hogs came in +0.80# heavier than non- packer hogs.

I thought that perhaps the V/Z spread would normalize a little today but it surely did not happen.

Best wishes,

dhm