MURICO.com Forum

The final Purchase Index for - - -

10/8/18 was DOWN -0.42 and the model projects the component on yesterday's kill will change in the range of +0.05 to *0.25. Packers may still have an inventory of more expensive hogs to kill that will support the component for a day or so however the up trend may be ending now. I have now sold all my long VVVs and am looking to get short to go to cash settlement. Have also taken profits on a good number of summer futures and will reload my boat on a significant pull back.

The VVVs are trading discount to the component by -0.84. With cutouts being weak yesterday and the Purchase Index having turned down, packers may close that "Gap" in a hurry with lower bids. I believe packers have been quite aggressive in shipping their hogs and that may be an indicator that they are expecting lower hog prices.

Best wishes,

dhm

Messages In This Thread

The final Purchase Index for - - -
Hogs by Dennis Smith
Re: Hogs by Dennis Smith