7/21/16 was down -0.75 to 76.76. That, together with the weakness of the QQQs, has opened the "Gap" to -2.73 with the component at a premium over the QQQs. Traders are thinking the index is headed lower still. As near as I can tell, the data is supporting that idea with cutouts being down yesterday and the kill coming in strong this week.

It appears that producers are staying current in their shipments. The 6-day moving average carcass weight eased to 208.08#. That is-1.36# yr/yr. Index hogs continue to be lighter at 208.08# and they were also lighter in weight at 208.08#. Packer hogs are only 0.08# heavier now which means they are down with the rest of the hogs.

The deferred months are recovering some from the thumping they took yesterday.

Best wishes,

dhm