MURICO.com Forum

The final Purchase Index for - - -

6/21/18 was up +003 and the model projects that the component on yesterday's kill will be up between 0.45 and +0.75. Packers probably still have some more hogs purchased that were more expensive and this will be supportive of the index for another day or two. Packers were cutting their bids for the negotiated hogs by quite a bit so I expect we will see the index decline shortly. With their weak bids packer purchased 82.0% of the moving average of daily purchases of total hogs and 08% on the index hogs. The strong up-trend seems to have ended. We may see price stability for a while or there could be a trend reversal and some weakness in the hog market.

The NNNs settled discount to the component yesterday by -4.92. I just noticed I did not post the final CME COMPONENT on Wednesday's kill. It was up 0.60 at 86.09. The model had projected it would be up between +0.60 and +0.90.

I'm still flat the NNNs but keep busy getting calendar spreads on and off my boat. There were several Q/V spreads loaded and unloaded yesterday.

Best wishes,

dhm