MURICO.com Forum

The final Purchase Index for - - -

12/14/17 was down +$0.68 and the model projects that the component on yesterday's kill will drop between -0.30 and -0.60. The GGGs settled premium to the component by +3.15. We have plenty of time to worry over how that "Gap" will be closed. The number of hogs being killed is falling a bit short of the USDA's projections so I am suspecting that the GGGs will participate in the closing by moving up a little by the time we get to cash settlement. Along the way, though, there will be plenty up up/down gyrations to keep life interesting - - - maybe even exciting some days.

Packers did not make a very strong purchase yesterday - only 83.1% of the moving average daily purchases. Packers were not wanting hogs very badly or they would have bid a bit more aggressively. They did a little bettter on the index hogs at 89.9%.

I ended up with one short ZZZ pig to ride into cash settlement and I am not expecting much change on that one. This is the smallest number I have taken to cash settlement for quite a while.

Best wishes,

dhm