7/24/19 was up +1.77 to 78.10. The QQQs are now trading premium to the component by 7.92.There has been a lot of "Gap" closing taking place. The model calculates that the component needs to gain an average of +0.53 per day to close the "Gap". The component has gained an average of 1.08 per day for the past seven days. If the component continues to gain at that rate, the QQQs will go to cash settlement at 93.79. I am NOT predicting that will happen rather I just play some WHAT IF? games from time to time and share with you what I see.

The six-day moving average carcass weight was steady at 209.15#. That is +1.72# hr/yr. It was not long ago that it was flirting with +5.0#. Index hogs were a bit heavier at 208.09#. Packer hogs are lighter than non-packer hogs by *0.54#. Packers are still shipping about 40% of the kill mix but it is dropping their carcass weights to ship that many hogs.

Hogs are taking a "Breather" today. Maybe we have topped out or maybe there is just a little correction going on. I was expecting the weakness to come tomorrow in front of the weekend. I suppose we could get some both days.

Best wishes,

Doc