9/6/19 was down 0.97 to 63.40. The VVVs are now trading premium to the component by +0.40.

The six-day moving average carcass weight moved up to 210.71#. That is +1.46# yr/yr. Index hogs were also heavier at 209.82#. The weather is still warm and fresh corn has not yet started to pour into the hog feeders. When that happens hogs will finish faster and weights will tend to go up even further. To have carcass weights go up now is probably suggesting that hogs are being backed up. In my way of thinking it is not a good idea to see hogs backed up when exports are weak, cutouts are weak and marketings a bit later are likely to increase.

This morning I put another short VVV pig on my boat at 64.35 with a scalping profit target of 1.05. For a minute I thought I might get it today but now it looks like I will wait for another day.

Best wishes,

Doc