The final Purchase Index for - - -

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,