MURICO.com Forum

As expected, packers were chasing hogs - - -

yesterday afternoon and they drove the Purchase Index up +0.70 and the model projects the component on yesterday's kill will move up between +0.40 and +0.70. It won't take many days like that and traders will set up and take note of the uptrend that is taking place.

With their higher bids, packers were able to purchase 100.1% of the moving average daily purchases of total hogs and 103.3% on the Index hogs. The kill this week is coming in quite a bit lower than projected from the last H&P report. This may be confirmation that hogs have indeed been pulled forward mildly creating a "Hole" in shipments that is now showing up. I doubt that it is a very big hole but any hole could be constructive if Trump and Xi settle their differences and exports start to move more freely.

Best wishes,

Doc