8/8/16 was down -0.71 to 69.01. That puts the QQQs discount to the component by -1.98 and the VVVs by 10.48. That "Gap" we are seeing for the VVVs is quite a "Gap" but goodness, gracious packers just keep hacking away and hacking away at their bids. A lot a damage get done when this goes on week after week.

The 6-day moving average carcass weight dipped to 207.96. That is -1.65# year/year. Index hogs were a little lighter at 207.23#. A very big surprise was the fact that the 6-day moving average carcass weight for packer hogs dropped by 2.36#. That a huge drop on a moving average. I couldn't believe it when I saw the number so I went back and checked to see if I made a key-punch error but couldn't find one. I have known that packers were liquidating their inventory of market hogs. Since packer hogs account for about a third of the kill, their aggressive shipping may slow down the decline in the Index.

Still short the VVVs. Looking at my screen, I just missed an opportunity to cover a couple of them.

Best wishes,

dhm