MURICO.com Forum

The final Purchase Index for - - -

11/14/17 was UP +$0.14 and the model projects that the component n yesterday's kill will change in the range of +0.15 and -0.15 and that amounts to just about "Unchanged."
The ZZZs settled at a discount of -6.51 to the component. That "Gap" is large enough to be somewhat supportive to the ZZZs since that makes a fair-sized break the Index would have to make over the next couple of weeks. ITZ says we often see hogs rally about this the of the year. The Purchase Index shows that packers bid a little higher yesterday.

With these higher bids packers only purchased 93.3% of the moving average purchases of index hogs and 86.1% on total hogs. It is worth noting that on Monday they purchased 125.4% of the moving average purchases of total hogs.

I think I will get out of my short ZZZs this morning. I might even get long a tiny bit. I may have over-loaded my boat with long G/J spreads yesterday and I have plenty of long K/Ms also.

Best wishes,

dhm