MURICO.com Forum

If yesterday was not a selling - - -

opportunity, Dewey, then I have hurt myself a little.

So far this week the kill is running +6.73% higher than the same week last year. Part of that is producers liquidating their heavies. The 6-day moving average carcass weight is now only +0.58# year/year. There is little to suggest that the kill rate is about to collapse. Yesterday packers had 9.24% more hogs scheduled than on this date one-year ago.

In addition to tracking and calculating the Purchase Index and the CME Lean Hog Index, I also calculate a national average cost of carcasses. It is composed of all the purchase figures released by the USDA as well as an estimated cost of packer-killed hogs. Currently it stands at 70.24 which is +0.26 higher than the carcass cutouts which were reported yesterday at 69.98. It is my opinion that numbers like that make packers a bit grumpy and not too anxious to throw their wallets out on the table and tell producers to take whatever they want.

Of course I'm sure packers have some long-term sales contracts in place so they are getting somewhat more than the national cost of carcasses that I calculate.

My family started arriving from far distant places today for Jean's funeral so I will be limiting the attention that I give to the market for the next couple of days. I hope the pit gremlins don't take advantage of me during this very tender time in my life.

Best wishes,

Doc

Messages In This Thread

The CME component on the kill for - - -
Re: The CME component on the kill for - - -
If yesterday was not a selling - - -