USDA’s latest Hogs and Pigs report scheduled for release Thursday, March 30 likely will show “mild expansion” of the hog industry, says Don Roose of U.S. Commodities. Four new packing plants are set to come on board this year, which could pressure prices later this year.
“I don’t think it’s a contraction phase here yet. It’s still a mild expansion,” Roose tells “AgDay” host Clinton Griffiths on the Agribusiness Update segment. “We’re going to have 6% more production in the second quarter. We’re going to have 5% more production in the third and fourth quarters. The fourth quarter has some risk to the downside, probably $10 a hundredweight.”
Yet rallies are still a possibility.
“These funds come in very fast, in and out, and if we get a rally back close to that $80 in the June or July, those are certainly catch-up selling opportunities [and] risk-management opportunities in a supply bear market,” Roose says.