Hog Records Falling
The quarterly look at hogs and pigs by the USDA showed record inventory for March 1st since the USDA began keeping records in the 1970s.
Livestock Analyst Shayle Shagam said that could mean a rough time for prices though.
“Even with relatively moderate grain prices, producer margins probably be squeezed and that may be part of the reason why when you move into their intentions for production in the incoming quarter they are starting to pull back on the sows farrowing.”
Prices in February were $55 per hundredweight, but currently sit at $49 and Shagam expects to see them fall to $39 by the end of the year.
Four new processing plants are scheduled to open this year to handle the influx of inventory.
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