7/15/16 was was down -0.46 to 79.67. That was not quite as much weakness as the model projected but almost in the range. The QQQs are now trading at a discount of -1.89 to the component so traders are expecting packer to keep right on hacking away at their bids.

Packers are running their hogs through their plants at a brink clip. The six-day moving average carcass weight on packer hogs dropped about a quarter of a pound while non-packer hogs gained nearly a quarter pound. Overall the 6-day moving average carcass weight eased a little to 209.71#. That is -1.62# yr/yr. Index hogs continue to be lighter at 208.82# and that was a little heavier.

The kill today was quite a bit larger than the same day last year. Maybe we are now seeing the larger numbers starting to be killed as suggested by the last H&P report.

Spread trading was good today for which I am grateful.

Best wishes,

dhm