8/5/19 was down -0.75 to 83.78. The QQQs settled discount to the component by -6.66. The model calculates the component will need to drop an average of -1.02 per day for the next seven days to close the "Gap". When packers get serious about getting their cost of pork down, they can really do a number on their bid prices.

The 6-day moving average carcass weight eased to 208.35. That is the same as one year ago. Index hogs were also lighter at 208.66#. Packer hogs were down about 1/2# while non-packer hogs were heavier by about 1/10#.

PACKERS are continuing to ship about 40% of the hogs that are killed but the declining weight of packer hogs may be suggesting they are having to pull hogs forward to keep this percentage up. I want to mention, though, that it might be hot weather that is slowing the finishing of hogs.

Best wishes,

Doc