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The final Purchase Index for - - -

9-17-14 was UP $0.24. I thought perhaps it would be down considering the sell-off in the VVVs but packers are apparently having to keep their bids firm to bring in the hogs. They did make a fairly strong purchase with their higher bids. The number of hogs purchased came in at 126.5% of the moving average daily purchases.

The firmness in the CME component yesterday, when coupled with the sell-off of the VVVs, has moved the VVVs to a discount of 2.22 to the CME Index component. I'm anticipating that the component will be up some today and that should widen the gap.

So far there is little evidence to suggest that the kill rate is going to surge much higher than projected from the last H&P report. so far this week the kill is trailing the same week last year by 4.33%. That is fairly close to projection from the last H&P report.

I had been expecting a lot of volatility in the VVVs as we move toward cash settlement and they are not disappointing me. Even though I was expecting a lot of volatility, I did not have a strategy to capitalize on it but I haven't been burned by it either.

I'm happy to say, Dewey, that I think the market played into you hand very well yesterday.

Best wishes,

dhm

Messages In This Thread

The final Purchase Index for - - -
Re: DH, I had a good game plan
I just went back and read the - - -
Re: Thanks DH, now I know
Well, ITZ, you are not getting hurt if you - - -
Re: The final Purchase Index for - - -
Re: Dewey, I'm glad somebody I know
Re: Dewey, I'm glad somebody I know