10/26/17 was DOWN -0.05!! That is not much but it breaks the long string of higher and higher daily number in the Purchase Index. The model projects that the component on yesterday's kill will be up between +0.35 and +0.65 because of the inventory of more expensive hogs that packers have already purchased.

The total number of hogs purchased yesterday was very large at 150.1% of the moving average daily purchases. For the index hogs it was also large at 159.5%. I noticed that the big jump was in the category of hogs labeled "Other Market Formula (futures/options)." I don't know specifically what that means. I do know that it means willing buyers and willing sellers came to a meeting of the minds and booked the hogs. I don't know whether the producers blinked or whether it was the packers wanting to line up the hogs. I'm suspecting it was some large producers were happy with the price and opted to schedule delivery. If that is the case, it could mean that the "Gap" will be closing a little with the ZZZs giving up some of their recent gains. I'm glad I took profits on some of the ZZZs think I should have cashed them all in.

Best wishes,

dhm