8/3/17 was down -0.55 to 86.42. Traders seem to have come to their senses and come to realize that demand is firm enough to keep packers hungry for hogs. the jump in the QQQs this morning has closed the "GaP" to -3.30 with the QQQs at a discount to the component. It takes an average daily drop of -0.50 in the component to close that "Gap". We have seen an average daily drop of -0.48 over the last twelve days. It appears that the QQQs are reasonably priced now so I took another QQQ pig to market this morning. l still have quite a few long QQQs most of which I have sold 83 calls against so I will just hang onto them to wring out the premium and go to cash settlement.

The 6-day moving average carcass weight was a bit firm at 207.04#. That is -0.97# yr/yr. Packer hogs are lighter by -0.20#. Packers seem to have eased up in the shipping of their hogs. Index hogs weere steady this morning at 207.17#. Producers of index hogs may be less current in their shipments than the rest of the producers.

Best wishes,

dhm