7/26/16 was down -0.55 to 74.62. The QQQs are now discounted to the component by -1.77. Traders are betting that the packers continue to drop their bids for a while yet. The cold storage report and the cutouts yesterday are looking like packers may begin to feel a little pinch as they try to sell all of the pork they are producing.

The six-day moving average carcass weight dipped to 208.67#. That is -1.65# yr/yr. The larger numbers continue to keep pork production quite high. Packer hogs are +0.31# over non-packer hogs and Index hogs are lightest at 207.21# and they were also down a little.

Still short a pair of QQQs.

Best wishes,

dhm