Increased Hog Harvest Leads to Lower Prices

Increased Hog Harvest Leads to Lower Prices

As production increases so does the risk for lower prices in the porcine MBM market. Pet food demand is beginning to slow, which should start to erode at the higher values in the market. Hog slaughter is up 25 percent relative to last week and as more confidence grows in the supply chain, so likely with the willingness of sellers to lower prices in an effort to keep supply moving, as seen today. At present porcine MBM out of the Missouri River market has a relative price to nearby soybean meal of 146 percent. At relative prices above 105 to 110 percent it’s reasonable…

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