yesterday's kill will be up between +0.45 and +0.75. The VVVs are now trading premium to the component by 3.32. Demand seems to be making a slight recovery with cutouts being a bit firm yesterday. This is casting doubt on a Hog Cycle low being posted this fall but it is possible that last week posted the seasonal "Low" in the Index. The kill rate is coming in very strong so we need to keep our eyes on demand to see if it holds as this pork works it way through the supply channels.

The model calculates that the component will need to gain an average of 46 cents a day to close the "Gap". Over the last five days it has gained an average of 50.4 cents per day so it is reasonable to speculate that the index may move up enough to close the "Gap".

Someone was really wanting to buy the G/J spreads this morning. Fortunately my boat was well loaded so I was able to accommodate them.

Best wishes,

dhm