8/30/18 was UP +0.11 AND the model projects the component on yesterday's kill will be down between -0.05 and -0.35. This, along with the strength in the cutouts yesterday, may be a hint that we are just about to post the low for this Hog Cycle. The VVVs are settled at a premium of +3.46 to the component so the traders are thinking we are near the "Trough".

Packers only purchased 77.7% of the daily moving average daily purchases of total hogs yesterday but they did get 91.8% on the index hogs.

With the prospects being fairly good that the "Trough" in in sight, I will try to add to my summer futures today and take profits on the short VVVs I have been riding down this last dip.

Best wishes,

dhm