7/19/19 was up +1.10 and the model projects the component on Friday's kill will surge between +0.60 and +0.90. That is on a par with the gains we have seen since this upward trend began three days ago.

Packers were really throwing money at hogs on Friday. It was almost like they threw their wallets on the table and said, "Folks! Take however much you want!"

But that did not net them a very large purchase.

They purchased 89.8% of the moving average daily purchase of total hogs and 98.5% on the index hogs. Generally on Fridays the percentages will be in the 120% range. Furthermore the 6-day moving average carcass weights have dropped to 210.31#. At the end of May they were above 116#. That drop in carcass weights makes a big difference in pork production.

Demand seems to be coming alive as measured by the advancing cutout prices. It looks like we are headed for some interesting things happening in the hog market.

Best wishes,

Doc