9/25/19 was down -0.11 to 54.66. We may begetting close to the seasonality low for the CME Lean HOg Index. But we are staring a rather large "Gap" of +9.56 in the face. On average over the past seven years the index has gained +1.32 from this date until the VVVs go to cash settlement. The most it has gained during that seven year period has been 7.20 in 2012. I sticking with some short VVVs and will add more if they bounce a little. I will cover one if we make a limit move down today.

The afternoon Purchase Index was up +0.37 but the model projects the component on yesterday's kill will be unchanged to down -0.30 because packers may still have an inventory of cheaper hogs purchased that will keep the component compressed for another day.

Best wishes,

Doc