3/4/2020 was down -0.18 and the model projects the component on yesterday's kill will change between+0.15 and -0.15. Packers were bidding higher in most markets but they bought larger numbers of the cheaper negotiated hogs and depressed the Purchase Index and it will also depress the component going forward. The component on the3/3/2020 kill was up +0.38 to 56.65. The JJJs settled premium to the component by +7.65. Packers gross margins were at $19.42/Index hog.

With their firm bids, packers purchased 87.7% of the moving average daily purchases of total hogs and 96.0% on the index hogs.

Best wishes,

D.H.,