MURICO.com Forum

The final Purchase Index for - - -

8/21/19 was down -1.44 and the model projects the component on yesterday's kill will drop between -0.90 and -1.20. Since the component did not drop as much as expected yesterday, there may be a little pent up downward pressure that will show up today and the drop will be more than projected. The only market that held up fairly well was the eastern corn belt and I think that is where Smithfield buys most of their hogs.

Packers purchased 84.5% of the daily moving average purchases of total hogs and 100.2% on the index hogs. Producers seem to be willing sellers in the face of sharply lower prices.

The VVVs are trading discount to the component by -14.71. "The Market" thinks the component is headed lower - lots lower. That is what always happens in the face of high production and low demand.

Best wishes,

Doc