MURICO.com Forum

The final Purchase Index for - - -

10/17/17 was up $0.93 and the model projects that the component on yesterday's kill will take another leap forward by something like +0.65 to +0.95. With their higher bids packers were only able to purchase 90.1% of the moving average daily purchases of total hogs and 93.6% of Index hogs. Looking at the carcass weights, I get the impression that producers are quite current in their shipments.

The ZZZs are now trading premium to the component by +1.31. A good part of that "Gap" will disappear when the 11:00 report comes out so the "Gap" is not a trading issue now.

Spike had it right when he said we are going to see a lot of volatility in the ZZZs.

Best wishes,

dhm

PS: kA!! Ching!! Just made a trip to the bank with profits from a long Z/G spread. Have plenty more to get off my boat.