3/10/2020 was down -0.23 in spite of the fact that packers were bidding higher in all eight of the index hog markets.
How can that be?
Well, they loaded up with negotiated hogs and negotiated hogs are a lot less pricey that the swine formula hogs so the index dipped and the model projects the component on on yesterday's kill will change in the range of +0.15 to -0.15. Cutouts were steady at +0.01 pushing packers gross margins up to $22.27 per index hog. The JJJs settled premium to the component.
The fact that packers were bidding higher in all the index markets suggests to me that the supply of hogs is finally beginning to tighten up a little but the carcass weights remaining firm says there are still ample hogs in producers' barns.