8/2/18 was down -1.25 to 66.96. The QQQs are now trading discount to the component by -8.08. The model shows that the component will need to drop an average of -1.07 per day from now until cash settlement to close the "Gap". That seems to be close to the trajectory that we are on.

The 6-day moving average carcass weight firmed to 208.26#. That is +1.26# year over year. Producers may be falling behind a little in their shipments. Index were also a bit heavier at 208.26#.

I didn't get my portfolio of summer futures to the size I wanted before they took off this morning. There is some question in my mind about whether or not we have hit the "Trough" for this hog cycle. So there may be another dip coming for the summer futures that will give me a chance to finish building the portfolio to the size that I am wanting.

Best wishes,

dhm