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Livestock
Live hog prices fell below $40 per hundredweight last week. This means hog prices are at their lowest level since November of 2009 when the U.S. was just beginning to pull off the bottom of the great recession.
Read MoreThe adage that the cure for high prices is “High Prices” is evident this year in beef markets. Finished cattle prices reached record highs around $170 in late 2014 and early spring of 2015.
Read MoreFed cattle prices have declined sharply since early September. This article discusses trends in feeding cost of gain and net returns for cattle finished in Kansas, with emphasis on the extremely large losses currently facing the industry.
Read MoreThe pork industry has largely overcome the impacts of the 2014 PED virus. Pork producers have been disciplined in limiting expansion after record 2014 profits.
Read MoreSoybean meal is an important but an “economically” secondary feed ingredient in hog diets compared to corn. My estimates suggest that soybean meal costs have been about 22 percent of the total costs of raising hogs over the past decade, compared to 32 percent for corn.
Read MoreThe nation’s beef cow herd has started down the path of the largest expansion in 25 years. The last major expansion was from 1990 to 1995 when the herd grew by ten percent.
Read MoreWeather damaged corn and soybean fields are also harmful to hog producers. Rising feed prices mean higher costs of production for the pork industry. Recent higher corn and soybean meal prices have increased anticipated hog costs by about $10 per head.
Read MoreThe pork industry continues to adjust from the supply shock created by the PED virus last year. Live prices peaked in the summer of 2014 as PED losses mounted and then fell into the late winter of 2015.
Read MoreThe beef industry stands alone in 2015 in its continued reduction in supplies available to consumers. The year of 2014 was a special year for the animal production industries with record high farm level prices for cattle, hogs, broilers, turkeys, milk and eggs.
Read MoreMore hogs than expected was the theme of the pork market in the first quarter of 2015. The USDA March Hogs and Pigs report did little to help explain why hog numbers were high, other than to simply admit that hog inventory counts from previous surveys were too low.
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