10/7/16 was down -$0.23 and the model projects that the CME Index component will move lower between -0.35 and -0.65. Packers have a fair sized inventory of cheaper hogs that will keep the down-side pressure on the component.

Packers made a solid purchase at 132.0% of the moving average daily purchases.

Last week's kill was strong at +5.94% over the same week last year. I think there are some revisions coming to the June H&P report. It is too early to tell if the Sept report will be revised but more hogs are coming than it suggested from the 180# and up category.

B