MURICO.com Forum

The final Purchase Index for - - -

1/7/2020 was down -0.46 and the odel projects the component on yesterday's kill will drop between -0.15 and -0.45. Not constructive that cutouts dipped by -1.27 yesterday.

With their lower bids packers only purchased 76.5% of the moving average of daily purchases. That is the lowest percentage I have seen for a while. The got 85.0% on the index hogs.

Packer hogs are now +2.68# heavier than the non-packer hogs. On 12/2/19 packer hogs were only 1.51# heavier. Packers apparently have been holding back their hogs and killing purchased hogs. This suggest to me that packers think hog prices are headed higher.

Yesterday the component on Monday's kill was down -0.02 to 59.13 and the GGGs settled premium to the component by +10.07. Packers gross margins on index hogs have fallen to $30.86/index hog.

Best wishes,

Doc

PS: The firm that has been hosting this web site has sold out to another firm effective 12/31/19. I have not heard from the new firm. Depending on their terms and conditions, I may or may not continue to sponsor this forum.