7/5/17 was up +0.31 to 92.54. The NNNs are now trading discount to the component by -1.29 and the QQQs have opened the "Gap" to -10.04 with the QQQs at the discount. Traders are quite confident that packers are going to let some air out of hog prices. And they just might but it didn't happen yesterday.

The six-day moving average carcass weight firmed to 207.28#. That is -1.78# yr/yr. That is what happens when there is a no-kill day - hogs gain weight. Index hogs were also heavier at 207.03#. Packer hogs were lighter by -1.82#. Packers have been killing substantial numbers of their hogs. It may be because they have been trouble finding enough hogs or it may be that they want to run their hogs through the plants before the price creeps down. I can't tell but I tend to think it is because they have been needing hogs.

As it is turning out, Dewey was right to be short the QQQs and I was wrong to be long. But I was only long a onezie.

Best wishes,

dhm