108/15/19 was up +0.95 to 64.40. The ZZZs settled premium to the component by +6.22. There is a lot of time until the ZZZs go to cash settlement and it will be no problem for the CME Lean Hog Index to move up and close that "Gap" if Xi and Trump make a deal on the Trade War. Packers are producing a lot of pork and it is going to take a good export market to carry it all off.

Primal cuts slipped a little to 77.72 on the carcass. With packers bidding higher for hogs, it dropped their gross profit margin on index hogs to $28.13/hog. The afternoon Purchase Index was up a little suggesting the component on Wednesday's kill will also be higher by perhaps +0.25 to +0.55.

The 6-day moving average carcass weight eased to 212.15#. That is +1.32#year/year. Index hogs were a bit lighter at 211.79#. With weather getting a bit cooler and fresh corn coming into the feeders, I have been expecting carcass weights to be a bit heavier but it is not happening. We are now moving into the next category of hog - the 120# to 179# category and they were not up as much as the heavier group that has just been slaughtered. The kill this week is cooling off a little in harmony with the last H&P Report.

The cash settlement index for the VVVs came in at 62.92 as projected by the model.

Best wishes,

Doc .