Quarterly Hogs and Pigs Report Shows Optimism

The USDA’s quarterly report on hogs and pigs shows an increase of about two percent in the number of head with a new quarterly record, and farrowing was also up two percent.

Shayle Shagam, USDA Livestock Analyst said there’s a good reason.

“Through August, returns to producers have been positive. Returns for packers have also been positive.”

There are 73.5 million head in that report and farrowings are expecting to increase for the near future.

Shagam said another reason for optimism is two new huge packing plants that have recently opened.

“As these new packing plants ramp up production, they’re going to need those hogs and that could be price supportive going forward.”

Shagam said large volume is pushing down prices a bit, but he doesn’t foresee a price collapse.