7/12/17 was up +0.10 to 92.88. The NNNs are trading discount to the component by -0.26 and the QQQs are at a substantial discount of -9.33. One good sneeze and packers can close the NNN "Gap" but the QQQ "Gap" is a different story. I'm suspecting when the QQQs go to cash settlement we will find they will move up a bit. Of course if demand crashes, that will not happen. After all We are producing record amounts of pork. I believe if the QQQs crash the VVVs will follow them down.

The six-day moving average carcass weight eased this morning to 208.07#. That is -1.18# yr/yr. I guess the higher weights we saw for a few days was caused by the slow kill over the holiday week. Packer hogs are -1.18# lighter than the non-packer hogs. Both packer and non-packer hogs were a bit lighter this morning. The percentage of packer hogs in the kill yesterday was very high at 38.64%. That is not a record level but quite a bit higher than usual.

I still have a long QQQ pig.

Best wishes,

dhm