8/13/18 was down -2.53 and the model projects the component on yesterday's kill will drop between 1.60 and 1.90. Yesterday the component fell to 57.62. The QQQs settled discount to the component by -2.53. The model projects that the component will need to drop -1.39 to close the "Gap". If we get the BIG drop today that the model is projecting, the QQQs may be pushed down a bit by the falling Index. This is tempting me to get short the QQQs and hold for cash settlement.

Yesterday packes only purchased 78.5% of the moving average of total hogs and 88.3% on the Index hogs. Packers have really become current in their shipments. I don't think that is a good sign for producers of negotiated hogs. Negotiated hogs seem to be headed lower in a hurry.

Best wishes,

dhm