7/20/16 was down -$0.97 and the model projects that the component on yesterday's kill will drop between -0.60 and -0.90. The drop in the Purchase Index yesterday was the largest we have seen in this round of price cutting by the packers. Looking at the weakness in the cutouts yesterday, there may be more to come.

Packers made only a fair purchase yesterday at 91.4% of the moving average purchase. It appears to me that packers are focused on killing their own hogs and may be interested in buying fewer hogs right not.

Now to see if I can get some of the spreads I added yesterday off my boat today or will I have to add more??

Best wishes,

dhm