8/9/18 was down -1.96 to 59.07. The QQQs are now trading discount to the component by -4.25. The model shows that the component will need to drop an average of -1.70 per day to close the "Gap". Packers seem to be in a hurry to get their cost of pork down, so it just might be that we will see the component fall enough to close the "Gap". I would not want to be hedging production in this market but producers have no choice.

The six-day moving average carcass weight firmed to 208.74#. That is +1.66# yr/yr. I believe Packers have become current in their shipments and their carcass weights are about the same as the non-packers and the Index hog.

I'm not inclined to take any QQQs to cash settlement. They are too hot for me to handle.

Best wishes,

dhm