MURICO.com Forum

The final Purchase Index for - - -

7/26/18 was DOWN -1.58 and the model projects the component on yesterday's kill will drop between -0.95 and -1.25. Looking at the way cutouts tanked yesterday it is understandable that packers are buying defensively.

Not only are packers bidding lower, but they are not buying many hogs. Yesterday they purchased 84.9% of the moving average daily purchases of total hogs and 83.1% on index hogs. There is a possibility this is backing hogs up and this is not good for producers. The QQQs settled discount to cash by -9.16.

Best wishes,

dhm