7/24/19 was up +0.66 and the model projects the component on today's kill will move up between +0.60 and +0.90. In some of the negotiated markets packers were putting a lot of money on hogs. The QQQs settled premium to the component by 10.44. The model calculates that the component will need to gain an average of +0.67 per day to close that "Gap". Since this up-trend started six days ago, the component has gained an average of +0.97 per day. If that rate of gain were to continue, the cash settlement index for the QQQs would be 91.33.

Primal cuts have gained enough to put packers' margins in fairly good shape so packers' now have the luxury of being able to bid higher.

Packers purchased 95.9% of the moving average daily purchases of total hogs by the time the afternoon reports came out and 99.6% on the index hogs. Packers were able to round up hogs quite well today.

Still long one QQQ pig and HODLing the 2020 futures. Volatility is very high in the options. I sold an October (V) option with a 100 strike for 1.55. That is 20 points out of the money. I tell you this, it was not a NAKED CALL. NOT IN THIS MARKET WOULD I DO THAT.

Best wishes,

Doc