MURICO.com Forum

The final Purchase Index for - - -

9/3/19 was down -0.09 and the model projects the component on yesterday's kill will slip between -0.45 and -0.75. The data seems to suggest that packers still have an inventory of cheaper hogs they have purchased that will keep the down trend alive for another day or so. The VVVs are trading discount to the component by -0.63 so the "Gap" has nearly evaporated.

With their nearly steady bids, packers purchased 106.0% of the daily moving average purchases of total hogs and 100.5% on the index hogs.

I made a big mistake getting short the VVVs. I took my lumps on part of the and will get out of the rest if we get another dip. Three of the short M/N spreads made it off my boat this morning at my profit objective and have several more I have orders to cover.

China still has an ASF problem and Robobank estimates it may take five-years for them to recover.

Best wishes,

Doc