|
| Gosh, Ray, Ya think?????
Hog Outlook
Glenn Grimes & Ron Plain
University of Missouri
January 8, 2010
We can now look back on 2009, a year well worth forgetting. John Lawrence’s calculations at Iowa State University indicate the average market hog was sold for a loss of $26.04 per head last year. Only 1998, with an average loss of $26.88/head, was worse. John estimates cost of production for barrows and gilts last year at $52.44/cwt live or roughly $70/cwt on a carcass basis. Only 2008, with a live cost of $57.05/cwt, was higher. By Dr. Lawrence’s estimates, hog producers have lost money in 25 of the last 27 months for a total loss of over $6 billion in equity. Based on current futures market prices, it looks like April will be the first profitable month for the average producer.
| |
|
There may be a lesson here....
