7/31/17 was down -$0.03 and the model projects that the component on yesterday's kill will be down between -0.30 and -0.60. Even though packers kept there bids up fairly well for Index hogs yesterday, they have quite an inventory of cheaper hogs that will most likely keep some downward pressure on the index. The QQQs settled discount to component by -7.59. The next 11-days of data will need to drop an average of -0.72/day to close that "Gap". Over the past eight days it has been down -0.54.

Traders continue to believe packers are really going to let the air out of their bids this week and next.

And they might be right. With cutoutss being firm yesterday, packers;' margins are still in good shape so they are not under a lot of pressure to cut their bids.

I'm still a dummy with some long QQQs and a lesser numberf of short VVVs,

Best wishes,

dhm

P.S.: kA!! CHING!! Just made a trip to the bank with the profits from selling a long Q/V spread.