10/9/17 was way, way up at a +1.14. That jumps the component to 57.82. The VVVs are trading premium to the component by 2.26 with four days of data to get us to cash settlement. The model projects that it will take a daily gain of 0.35 to close that "Gap". Over the last 6-days the component has gained an average of +0.61 per day. If that rate continues, the rushing index will bump the VVVs up a notch.

The six-day moving average carcass weight eased to 209.28#. That is -0.14# year over year. That is not much but it may be signaling the producers are quite current in their shipments. The high kill rate we are seeing is dropping the carcass weights a bit. Perhaps it is these new plant soaking up some of the market-ready hogs. Index hogs were also lighter at 209.28#. Both packer and non-packer hogs were about 1/4# lighter.

If the VVVs dip a little, I will go to cash settlement with some long VVVs.

Best wishes,

dhm