MURICO.com Forum

The final Purchase Index for - - -

5/23/18 was down -0.01. That is not much of a drop but it may be quite significant because it represents a trend reversal that validates the oft seem tendency of packers to lower their bids following the holiday demand surge. With cutouts dipping by -1.33 it is understandable that packers are wanting to get their cost of pork down. The model porjects the component on yesterday's kill will be up between +0.05 and +0.25. Packers still have an inventory of more expensive hogs to process and that will support the component.

Packers purchased 90.1% of the moving average purchases of total hogs and 95.5% on the index hogs.

I'm still short the MMMs and have a few more than I had yesterday morning. Will sell more if hogs bounce today. A bounce is not what the pre-opening is pointing toward.

Best wishes,

dhm