MURICO.com Forum

The final Purchase Index for - - -

1/15/2020 was up +0.68 and the model projects the component on yesterday's kill will be up between +0.25 and +0.55. The search for this year's seasonality high is now underway and it will most likely be a bumpy ride in trying to get there.

With their higher bids, packers purchased 86.0% of the moving average daily purchases of total hogs and 89.8% on the index. Those are about usual purchases but packers had to bid up a bit to get them.

The GGGs settled premium to the component by +7.97. On average over the past six-years, from this date until the GGGs go to cash settlement the index gained +2.54 but in 2017 it tacked on an impressive +12.39. In 2015 there was a drop of -14.29. Looking at the potential for exports, there is a good chance that this year the Index will continue to move up but +7.97??? I have my doubts.

Best wishes,

Doc