8/19/19 was up +0.33 mostly because packers in the eastern corn belt were bidding aggressively for Swine or Pork Market Formula hogs. I believe that is where Smithfield is located so that may be telling us something about where demand is centered. The model projects the component on Monday's kill will drop between -0.20 and -0.50.

By the time the afternoon reports were released, packers had only purchased 83.8% of the moving average daily purchases of total hogs and 95.9% on the index hogs.

With cutouts being down -1.28, I am expecting the final Purchase Index to be quite weak in the morning.

It helped for the hog futures to be up across the board today but it may not stick tomorrow when traders realize that packers are having a challenge to sell all the pork they are producing.

Best wishes,

Doc