The final Purchase Index for - - -

3/12/2020 was up +0.59 and the model projects the component on yesterday's kill will move up between +0.30 to +0.60. Yesterday the component component moved up +0.62 to 58.63. The JJJs settled premium to the component by +2.29. Packers' margins are in quite good shape at $22.60 per index hog.

With their higher bids packers purchased 80.9% of the moving average daily purchases on total hogs and 88.6% on the index. When the afternoon reports came out, packers thought they had made a larger purchase but when the dust settled, they reported a smaller purchase and they ended up bidding higher to get that smaller number. This suggests to me that the inventory of market ready hogs is on the decline and according to the last H&P Report, it should be.

The pre-opening seems to be saying that the limit move yesterday was an excessive and there may be some "Fixing" of it today.

Best wishes,