7/24/17 was down $0.94 and the model projects that the component on yesterday's kill will drop between -0.50 and -0.80. With their lower bids, packers were able to purchase 100.2% of the moving average daily purchases. Producers are willing sellers, it appears. And they have the hogs finished and ready to sell. It appears that packers' margins are still in good shape since cutouts were only down -0.57.

The QQQs settled discount to the component by 10.38. That is quite a "Gap" this close to cash settlement but packers know how to whack their bids if their margins start to suffer. The model projects that the component will need to drop an average of -0.67 per day from now until cash settlement to close the "Gap". In the last three days the average decline has been -0.48.

Sometime ago I said that this is going to be some "Gap" closing dance and there is plenty of "Dance" still to come.

Still long the QQQs but have solld a couple of 83 calls against them.'

Best wishes,

dhm