4/26/18 was up +0.38 and the model projects that the component on yesterday's kill will be up between +0.55 and +0.85. This may be suggesting that packers are now becoming a bit less aggressive in buying hogs. That is understandable with cutouts showing some weakness yesterday. The KKKs are now trading premium to the component by +5.92. The model calculates that it will take an average daily gain of +0.475 to close that "Gap". The component has moved up an average of +0.998 over the last seven days. If the smaller up-tic in the Purchase Index today is suggesting that packers are becoming less aggressive in buying hogs, it may be a stretch for the "Gap" to be closed entirely by a surge in the index. If he KKKs bounce to 67.75, I am going to get short again.

Yesterday packers purchased 82.2% of the moving average daily purchases of total hogs and 94.3% on the index hogs.

Best wishes,

dhm