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Analyst says strength in hog market comes as a surprise

The strength in the hog markets has continued and a livestock market analyst says that is not something anyone could have predicted.

University of Missouri’s Scott Brown says cash prices were up 3 to 4-dollars relative to where they started the week and futures prices were up 7 to 8-dollars.

Brown says one of the biggest concerns for the hog markets have been the pressure on slaughter capacity headed into the last quarter of 2016.  “Near record pork supplies yet prices have been moving higher tells me that as most folks think we’re going to get by this very tough shackle space situation they’re willing to bid prices a little higher,” he says.  “I am not going suggest we can get a lot more strength relative to where we have been as of late – but it is a very nice run in hog prices.”

He tells Brownfield those price runs make it a good time for hog producers to take a closer look at risk management practices.