The breeding inventory figure in USDA’s Quarterly Hogs and Pigs Report was a little smaller than what analysts were expecting, but increased farrowing intentions projections may be signaling some herd expansion late next year.
Ron Plain, Professor of Agricultural Economics at the University of Missouri, tells Brownfield expansion should occur, but maybe later than expected, “The trade was expecting to see significant signs of growth in the swine herd – the economics have turned favorable with lower feed costs – but USDA says the breeding herd was only up four tenths of a percent when compared to a year ago, the trade was looking for more like one and a half percent.”
Plain adds, “However, farrowing intentions – USDA says this fall, we’re going to farrow four tenths of one percent more sows than a year ago and this winter nine tenths of one percent more, so it’s growth, but fairly modest at this point.”
The next hog inventory report is out December 27.
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