10/5/18 was up +0.10 and the model projects the component on Friday's kill will be up between +0.20 and +0.50. With the VVVS opening "Gap" up, the VVVs are now trading discount to the component by a mere -0.40. With only 6-days of date to get us to cash settlement, the VVVs will be very sensitive to movements by the Index. I believe packers have some more expensive hogs already purchase so the chances are fairly high that the component will move up again tomorrow and perhaps the next day also. I'm still long the VVVs but am wanting to sell rallies and buy dips. Didn't quite hit my sell order this morning.

Packers purchases a lot of hogs Friday - 118.2% of the daily moving average of total hogs and 127.1% on the index hogs. Packers are wanting hogs and producers are willing sellers but packers had to shell out a little more money to make the deal,

I sold part of my inventory of summer futures Friday on the rally and am now in the mood to buy if the market co-operates and gives me a dip.

Best wishes,

dhm