8/13/14 kill was down -1.94 to 115.43 giving us 50% of the cash settlement index. Packers were able to get the component down somewhat more than the model projected. The dip in the CME Index component yesterday was sufficient to close the index to HEQ4 gap to 0.68. It now takes a drop of -1.46 on today's kill to get the Cash Settlement Index down to the 114.70 where the QQQs are trading.

If we get a duplicate of yesterday's -1.94 drop on today's component, the Cash Settlement Index will be 114.46.

I didn't like the larger-than-expected drop this morning so un-wound all the long QQQ purchases I made this morning.

The six-day moving average carcass weight firmed to 213.54#. That is +9.82# yr/yr. Most of the weight gain came from non-packer hogs.

Even though the long QQQ probe did not work well for me, the Q/V spreads will go a long way toward healing my wounds.

Best wishes,

dhm