9/6/18 was WAY UP by +1.03 and the model projects that the component on yesterday's kill will jump between +0.40 and +0.70. With their higher bids, packers were able to purchase 107.9% of the moving average daily purchases of total hogs and +127.4% on the index hogs. Demand seems to have really surfaced at least for packers. Producers seem to be very current in their shipments. This may mean that the glut of pork that seemed destined to plague the market this fall has mostly run its course now and stable or higher prices are the thing we will see for a while.

"The Market" is definitely expecting higher prices. The VVVs are now bid up until they are premium to the component by a whooping +9.33. Packers bumping their bids up by more than a buck a day can close a whole bunch of "Gap", that's for sure.

I continue to believe the summer futures were beat down too low when we were in the chase for the Hog Cycle low which we may have now seen. Even if we have not seen the Hog Cycle low, there is a very good chance that we have seen the Seasonality low and the Hog Cycle low if not in, has been pushed quite far into the future. I added a few more long QQQs yesterday and a lone MMM.

Best wishes,

dhm