6/26/19 was down -0.74 and the model projects the component on yesterday's kill will drop between -0.35 and -0.65. Since the component was not down quite as much yesterday as projected, that may mean packers are accumulating some cheaper hogs and there will be a mildly larger-than-expected drop in the component over the next few days. Packers are really dropping their bids on the negotiated category of producers. These may be the marginal producers who will be forced out of business during the next wash out.

With their lower bids, packers were still able to purchase 102.3% of the moving average daily purchases of total hogs and 96.12% on the Index hogs.

Best wishes,

Doc