7/21/16 was down -$0.43 and the model projects that the component on yesterday's kill will drop between -0.45 and -0.75. Packers are really letting the "Air" out of their bid prices. It appears they are able to do this since they have sufficient numbers of their own hogs to kill if producers of index hogs are reluctant sellers. So are the producers of index hogs are willing to take the lower bids and keep the hogs moving so that they stay current in their shipments.

Packers only purchased 84.7% of the moving average daily purchases.

I think I will sell a couple of QQQs this morning if they bounce a little.

Best wishes,

dhm