7/25/17 was down -$0.65 and the model projects that the component on yesterday's kill will drop between -0.40 and -0.70. The "Gap" has been cut to -8.57 with the QQQs being discounted to the component. There will likely be another slice taken out of the "Gap" when the 201 report comes out this morning.

Lower packer bids did not slow the flow of hogs. Packers purchased 97.7% of the total purchases and 100.3% of the moving average purchases of Index hogs. Packer hogs are about 1.50# lighter than non-packer hogs. I'm beginning to suspect that packers were liquidating their hogs while prices were higher and are now buying hogs cheaper.

Still long the QQQs and short a few VVVs.

Best wishes,

dhm