Stronger hog prices and lower feed costs have put the pork outlook back into the black for the coming year, says a Purdue Extension agricultural economist. According to the U.S. Department of Agriculture’s Hogs and Pigs report, there has been little increase in the country’s breeding herd.
With growing demand and a fairly stable-sized breeding herd, producers can expect to return to profitability in the next 12 months. The USDA also reported in its September Grain Stocks report that corn inventories now are higher than expected, reducing the cost of feed.
“Pork producers have largely settled for the status quo because of the uncertainty over feed prices,” said Chris Hurt. “As a result, the USDA says the breeding herd has expanded only slightly as producers awaited the corn and soybean yield and price outcomes of the 2011 growing season.”
According to the USDA, the breeding herd increased 0.6% nationwide in the last year.… Continue readingRead More »