was steady and the model projects the component on yesterday's kill will fall between -0.10 and -0.40. The weak cutouts are just not giving packers the elbow-room to sweeten their bids very much.

Packers purchased 82.4% of the daily moving average of daily purchases of total hogs and 92.4% on the index hogs.The number of negotiated hogs purchased was very low. I am suspecting these are the marginal producers and some of them will sell their sows and packers seem to be poised to pick up the slack with their expansion.

Best wishes,

dhm