Thursday, November 21, 2013

Hogs and Corn Price Recovery

Chris Hurt has published an article in the University of Illinois' Farm Doc Daily discussing the prospects for future hog expansion in response to the reduced corn prices which I found very interesting. There are some negatives which may impact the industry's ability to increase the breeding herd, particularly whether porcine epidemic diarrhea virus (PEDv) becomes widespread. In virgin herds this disease has been devastating to young pigs and could result in a delay in national swine herd growth. However the article is positive for long-term corn price recovery.

The same market factors which will influence swine numbers should result in an increase in the cattle herd though it will take longer for this to have an impact on corn prices. A link to Chris's article is below.

Hogs Provide Near $7 per Bushel Corn Value

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