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