Producers are getting a better outlook for hog profitability, and analysts call it a breath of fresh air.
Dr. Steve Meyer with EverAg says back in December, he estimated a $12 loss. As of Friday, it is in the black at $1.66. He says it is nothing to write home about but it is a step in the right direction.
To bring back more profitability, Meyer says either costs have to go down, demand needs to improve, or supplies need to get cut.
“Well we’re getting two of them for sure, we’re certainly getting lower costs, and if you look at the ag outlook forum, last week, with the acreage they’ve got in and yields they’ve got in and the carryout. I mean, 350 million bushels and 2.5 Bushels of corn, we’re going to get a break on costs here, probably more than we’ve seen.”
Meyer says it is important for the U.S. market to manage growth and the risk that comes with it.
