MURICO.com Forum

The final Purchase Index for - - -

11/12/18 was down 0.67 and the model projects that the component on yesterday's kill will drop between -0.45 and -0.75. The ZZZs are trading discount to the component by -5.58. The model calculates that the component will need to drop an average of -0.24 per day to close that "Gap". It looks like we will see far more than that today.

With their lower bids, packers purchased 108.1% of the moving average daily purchases of total hogs and 90.5% of index hogs. I am still long the summer futures and short the ZZZs. I am ready to pile more summer futures onto my boat if we get a dip but will HODL the summer futures that are on there now. I am long the M/N SPREADS and short the Q/V which may turn out to be a mistake. I much prefer trading the Q/v from the long side but it soared a little too high to fast and I could resist the temptation to get short.

Best wishes,

dhm