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The Final Purchase Index for - - -

7/22/14 was doen $1.10 and the model projects that the CME Component on the 7/22/14 kill will drop between -0.60 and -0.90.

With the CME Index at 132.37 and cutouts at 133.84, it would appear that packers margins are thin. In reality, though, packers buy a lot of hogs that are below the index. When these hogs are taken into consideration, my projection is that the national average price packers paid for hogs yesterday was 128.20. With packers processing portions of their kill, they are probably doing all right.

In actuality, though, packers want to buy hogs lower, not higher, so they will do what they can to get their prices lower. If producers have a few extra heavies, packers will want to spook them into shipping their hogs at a lower price.

Took profits on some Q/V spreads this morning. Will buy back on a dip.

Best wishes,

dhm

Messages In This Thread

The Final Purchase Index for - - -
Re: The Final Purchase Index for - - -
I hope you dumped your longs - - -
Re: I hope you dumped your longs - - -
Good Morning, Dewey. Yesterday - - -
Re: The Final Purchase Index for - - -
Good Morning, Dewey. This is indeed a strange -