MURICO.com Forum

The final Purchase Index for - - -

8/30/19 was down -1.95 and the model projects the the component on Friday's kill will drop between -1.35 and -1.65. Packers are getting in a hurry to fix their margin problem and it is the producer who is feeling the pinch.

With their lower bid, packers purchased 131.1% of the average moving average purchases of total hogs and 101.1% on the Index hogs. Either packers were not wanting Index hogs or else producers were not going for the lower bids. On Fridays packers usually purchase something like 120%on the Index hogs.

The VVVS settled discount to the component by -5.10. The component only needs to drop an average of -0.16 from now until expiry to close that "Gap". If packers keep hacking away at their bids, it may push the VVVs even lower.

Best wishes,

Doc