MURICO.com Forum

The final Purchase Index for - - -

8/17/18 was down -1.30 and the model projects that the component on Friday's kill will drop -1.15 ti -1.45. It appears that packers are not buying into the price surge that the futures have made. Producers may not be either. I say that because they were selling plenty of hogs. Packers bought 115.7% of the moving average daily purchases of total hogs and 112.3% on the index hogs.

When the 201 report comes out, we will see another low for the Hog Cycle posted so the chase is still on looking for the seasonality low as well as the Hog Cycle Low. Both the VVVs and the ZZZs are saying that it will be posted before the VVVs go to cash settlement. The futures market thinks that packers are about to start sweetening their bid prices.

It did not happen on Friday.

This is a difficult market to be hedging production - at least that is my take on things.

I am still HODLing the summer futures.

Best wishes,

dhm