due to packer submission problems the final Purchase Index will be late. Packers have been bidding higher and higher for hogs and my best guess is that their inventory of purchased is such that the component on yesterday's kill will be up again when we get the 11:00 AM report. With the VVVs settling discount to the component by -0.41, the stage seems to be set for the VVVs to show a bit of strength today so I am staying long the vVVs as well as the summer futures. I have taken profits on two of the QQQs so I am in the chase to add some QQQs on a dip to replace the ones I have sold.

The low of 45.30 that the CME Lean Hog Index posted on 9/1/18 is still holding as the Seasonality Cycle low as well as the low for this Hog Cycle. So I still like being long the summer futures.

Best wishes,

dhm