MURICO.com Forum

The final Purchase Index for - - -

7-24-15 was down -$0.02 and the model projects that the CME Lean Hog Index component on the 7-24-15 kill will be in the range of +0.05 to -0.25. Thus it is not likely to change much but more likely to be down a little than up much.

Packers were able to make an average purchase Friday at 99.1% of the moving average daily purchases and they did this with mostly steady bids. The kill last week was 13.1% over the same week last year. It continues to appear that producers are quite well supplied with hogs and they are continuing to come to market at quite heavy weights. The USDA pegged the pork production last week at 12% over the same week last year. Based on the larger number killed and continuing heavy carcass weights, I was expecting a little higher percentage than +12.0%.

The QQQs settled discount to the component by -0.96. As a group, traders are surely not very bullish the QQQs. The number of heavy hogs is just not letting up and if the USDA's numbers were correct, there are ample numbers still to come. I'm not very bullish this market.

Best wishes,

dhm