7/11/17 was up 0.07 to 92.79. The NNNs are now trading discount to the component by -0.29 so they are now in lock-step and the NNNs will tend to change as the component changes. The QQQs are a different matter. They are discount to the component by -9.96 and that seems like a lot to me so I am clinging to that lone long QQQ and my add more. The set-up I see makes the QQQs look like good candidates for a limit-up move when the "Gap-closing-dance" begins next week. Producers are looking at a terrible climate for hedging their August production. If I were a producer I would consider going naked any August hedges and roll-forward and hedge October production.

The 6-day moving average carcass weight moved up to 208.22#. That is -0.99# yr/yr. Index hogs were also a bit heavier at 208.56#. It is a bit out of character for hog weights to be getting heavier this time of the year. This raises the possibility that producers are getting behind a bit in their shipments. The percentage of packer hogs in the kill mix yesterday was high again. I think packers are rounding up their hogs because they are having a little trouble finding hogs otherwise. The other possibility is that packers are wanting to market their hogs before the price drops.

Best wishes,

dhm