Tuesday, November 27, 2012

Hog price recovery outlook fading


Hopes that hog prices would bounce back next year are fast fading.

The most recent analyses of national hog numbers indicates there has been no huge sell-off of sows.
In fact, during October, there were fewer sows marketed this year than last in the United States;

Paragon Economics founder Steve Meyer and Steiner Consulting Group principal Len Steiner say a large reduction in the breeding herd seems less likely “with each passing week“.

While there may be no sharp reduction in sow numbers, their owners are clearly in weakened financial straits. In Canada, a couple of the largest ones – Big Sky of Saskatchewan and Paragon of Manitoba - are bankrupt, but have been sold to meat-packers Olymel and Maple Leaf Foods.