11/8/19 was down -1.10!! Packers ar just not wanting index hogs. The model projects the component on Friday's kill will drop between -0.65 and -0.95.

With their lower bids, packers still purchased 129.8% of the moving daily average purchases of total hogs and 135.8% on the Index hogs.

The model calculates that the packers' margins on the Index hogs has now risen to $47.91/Index hog.

Packers don't seem to have much interest in purchasing "Negotiated Hogs". With their lower and lower bids they just might put the producers of negotiated hogs out of business. Packers seem to be expanding the number of packer owned hogs suggesting packers will expand and the negotiated producers will be replaced by packer owned hogs. There may be some risk that hog futures will go by the wayside just as the egg market, belly market, hide market and potato market did when the big corporates moved in. There is no doubt about it; packers are expanding their production capability!

Best wishes,

Doc