10/10/17 was UP +1.01 TO 58.83. The VVVs are now trading premium to the component by +1.99. The model now calculated that the component will need to rise by 79 cents per day to close the "Gap". Over the past 7-days the average move up has been 66.7 cents. The up-trend seems to be strong enough to push the index up to where the VVVs are and may nudge the VVVs a bit higher but not a huge gain.

Ka!! Ching!! Just made a trip to the bank with profits from a long K/M spread. If you have the patience to stick with it, the long K/Ms are mighty nice.

The 6-day moving average carcass weight moved up to 210.47#. That is -0.19# yr/yr. Weights don't seem to be trending but are just jumping around a little. in the 210# to 212# range. Index hogs were also up at 209.40#. Packer hogs are +0.59# heavier than non-packer hogs. The percentage of packer hogs in the kill has been a bit higher with yesterday's percentage being 34.73%. It is more often in the 32% range.

I have taken on a few more VVVs to go to cash settlement. It won't be a big winner but the data seems to be pointing to a low-risk trade.

Best wishes,

dhm