U.s. hog numbers keep growing: But the underlying concern about high corn feed costs could mean better prices in 2008

摘要

CORN PRICES are higher and returns lower, but that isn't making any difference to hog production plans across the border - at least not yet. The hogs and pigs report released by the USDA on March 30 confirmed the continued expansion of the American hog inventory. The inventory of market hogs as of March 1 was up 1.3 per cent compared to March 1, 2006, while the number of breeding hogs was reported up almost one per cent from last year. So what gives? According to Rich Pottorff, a market analyst withSt. Louis-based Doane Agricultural Services, the answer is as simple as the promise of better times. Indeed, with the June hog future at about US 75/cwt dollar - as compared to the nearby April contract at a considerably lower 63 dollar - the incentive is there for American producers to wait out the tough times and sell into better prices in the summer, he said.