10/5/17 was UP +0.47 to 56.00. The VVVs are now trading premium to the component by 4.05. The model calculates that the component will need to jump an average of 55.0cents per day to close that "Gap". Over the last four days it has moved up 46.1 cents per day. Earlier today I said that the VVVs might have to give up a point or so. We got that point already so maybe we will get another one.

The 6-day moving average carcass weight firmed to 210.53#. That is +0.21# yr/yr. It appears that producers are now fairly current in their shipments and we are seeing the trend toward mildly heavier hogs continue. Packer hogs are now +0.52# over non-packer hogs. There is some efficiency for the packers to process heavier hogs.

Still short the VVVs.

Best wishes,

dhm