MURICO.com Forum

The afternoon Purchase Index for - - -

5 6/6/19 was up +0.13 and the model projects the component on yesterday's kill will be down between -0.10 and -0.40. Perhaps packers still have some cheaper hogs to process that will put a bit of downward pressure on the component. The MMMs. settled discount to the component by -1.04. Historically there tends to be some surge in demand as retailers fill their cases for the Independence Day holiday. Whether it occurs before the MMMs go to cash settlement or after is the question. The mild firmness in the cutouts yesterday and the up-tic in the component may be leading indicators that it will occur before the MMMs go to cash settlement next Friday.

It may be getting close to the point that short MMMs should be covered or possibly rolled forward to short NNNs.

Yesterday packers purchased 81.0% of the moving average daily purchases by the time the afternoon reports came out and 88.6% on the Index hogs..

The exports are not clicking in enough to help move the demand upward. I don't think it means that China has solved its ASF problem.
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Best wishes,

Doc