7/26/19 was up +0.94 and the model projects the component on Friday's kill will continue its upward march by jumping between +0.90 and +1.20.

By the time the afternoon reports were released, packers had only purchased 87.3% of the daily moving average of purchases of total hogs and 86.9% on index hogs. Friday's are generally the high purchase day running in the 120% range; thus it appears packers still had a lot of late afternoon work to do when the report was issued. Does that sound bearish to you in view of the fact that cutouts were up another fifty cents giving packers a bit more incentive to kill hogs?

The K/M spread jumped a little on Friday so I sold a handful. The MMMs have a tendency to be more heavily traded than the KKKs so if the market turns up as we search for the next Hog Cycle Crest, chances are that the MMMs will respond a little more strongly in a bull market than the KKKs and I also piled another QQQ20 onto my boat to HODL.

Best wishes,

Doc
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