8/5/19 was down -0.57 and the model projects the component on yesterday will fall between -0.10 and -0.40. The QQQs are trading discount to the component by --6.73. The model calculates that the component will need to drop an average of -0.89 per day for the next eight days to close that "Gap". So far the down trend does not seem to be that strong.

With their lower bids packers purchased 71.6% of the daily moving average purchases of total hogs and 72.7% on the index hogs. Those are low numbers. If it means packers are not wanting hogs and are backing them up, it is a hint that we may head lower in a hurry. If it is a hint that producers are short on hogs, packers may have to bid higher to bring them in. It was welcome news to see the primal cuts trading higher.

Best wishes,

Doc