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The rME Lean Hog Index component on the kill for -

11/11/19 was up +0.15 to 59.04. It was the strength of the Swine or Pork market formula hogs that pushed the index up. The negotiated hogs took another terrible beating. The ZZZs are now trading premium to the component by +5.83. If the Index is going to move up and close that "Gap", the cutouts are going to need to continue the strong uptrend that started yesterday. I believe packers are really feathering their nest on Index hogs now. The model calculates that packers' gross margins on index hogs are $59.60/hog.

The six-day moving average carcass weight eased to 215.02#. That is +1.96# yr/yr. Index hogs were a bit heavier at 214.46#. Packer hogs are at about the same weight as the no-packer hogs.

Best wishes,

Doc