The highest hog prices on record will soon be arriving, said a Purdue University Extension economist.
“These may be the highest hog prices for the next several years as well, especially if corn and soybean shortages can be reduced somewhat this summer with favorable growing conditions. On the other hand, if 2011 turns out to be a short crop production year, then the previous statement will be invalid as surging feed prices will force added liquidation of the hog herd this fall. But you already knew how much was riding on upcoming crops,” said Chris Hurt.
USDA’s March Hogs and Pigs report implied that pork supplies will be somewhat higher this year. However, demand factors are more important to hog prices now than supply. Those demand factors include the continued strong growth in export demand, the continued economic recovery in the U.S., and inflation in commodities, he said.
The report indicated that the market herd was up nearly 1%, primarily as a result of a somewhat larger-than-expected winter pig crop, he said.… Continue readingRead More »