9/24/18 was up +1.34 to 62.87. The VVVs are now trading discount to the component by -0.38. The percentage of packer hogs in the kill mix slumped last week but it is recovering now. I think it was Florence that slowed down the movement of packer hogs.

The six-day moving average carcass weight slipped to 208.73#. That is -2.11# year/year. It appears that producers are quite current in their shipments. Packer hogs were +1.34# heavier than non-packer hogs. A few days ago packer hogs were +2.39# heavier. This suggests to me that packers have raided their barns for hogs to meet the needs they were not able to meet through purchases. Possibly Florence killed enough hogs to cause this mild shortage of supply that seems to have surfaced so it may not last very long if there are big numbers of younger hogs in the pipeline.

Being long the VVVs is working well today. There is not much excitement in the summer futures. I took some profits on a long QQQ when there was a mild rally this morning, now I am wanting to buy if back if there is a dip.

Best wishes,

dhm