8/4/16 was down -0.49 to 70.22. The QQQs are discounted to the component by -2.32 and the VVVs are discounted by -11.47. Traders are expecting the down-trend in the Index to continue for a while.

Producers brought heavier hogs to market yesterday with the 6-day moving average carcass weight moving up to 208.14#. That is -1.70# yr/yr. Packer hogs were heavier by nearly half-pound yesterday. Packer hogs are now +0.60# heavier than non-packer hogs. The kill this week has been a bit lower than I was expecting. Perhaps the lower kill rate is resulting in hogs adding a little weight by the time they get to market. I think it may not be good news for producers if shipments are falling out of currency as this weight change may be suggesting. Index hogs continue to be lighter at 207.26# and that is a tiny bit lighter.

I have made several scalping trades in the VVVs, I had thought that we might see some weakness in the VVVs today but it is not coming so my short VVVs are doing me no good.

Best wishes,

dhm