How Many Hogs Will Be Liquidated?

July 1, 2009 07:00 PM

Sara Schafer, Top Producer Business & Crops Online Editor and Rachel Duff, Farm Journal Intern

Hog producers have been losing money since October, says Rich Nelson, director of research for Allendale, Inc. Ron Plain, University of Missouri extension economist, add the hog market was beat up real bad during June.

These numbers would mean a second year of liquidation, Nelson says. Last year's liquidation would normally have been enough for a profit, but with the swine flu this year, there is now a new reduced level of demand for pork. Another liquidation will occur to meet the new demand levels, Nelson says.

This news will have little effect on the corn market, since pork adds up to only 11% of all corn use, Nelson says. But, a 2% to 3% drop in hogs is definitely something corn farmers to keep on their radar.

Yet, the two say there is encouraging news in USDA's June 26 Hogs and Pigs report. Listen to the two expert's commentary on the report.

Ron Plain, University of Missouri extension economist


Rich Nelson, director of research for Allendale, Inc.


For More Information
U.S. Hog Inventory down 2 Percent

You can e-mail Sara Schafer at and Rachel Duff at
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