7/30/14 was down -$1.04 and the model projects that the component for the 7/30/14 kill will shed between -0.80 and -1.10. The HEQ4 are discounted to yesterday's component by 7.18 and that will probably close by about a point when we get the 201 report this morning.

Over the last ten-years the index has gained and average of 0.21 from this date until cash settlement and the most the index has ever lost during that time period was -8.62 in 2009 and like ITZ says, the hog market environment this year is no 2009!

I think technical/emotional factors took the QQQs too low yesterday and this morning "The Market" has also concluded they were too low. I rode a few long QQQs down that slippery slope and it was no fun. Luckily I was able to make some August scalps as well as some Q/V, V/Z, Z/G and K/M spread scalps to cushion the draw down.

Best wishes,

dhm