USDA’s Quarterly Hogs and Pigs Report was bearish. June 1 inventory of U.S. hogs and pigs was at the highest level seen in the history of the USDA report. At 68.4 million head, the inventory was up two percent from June of 2015. The breeding herd supply was 5.8 million head, up one percent from last year. The March-May pig crop topped 30 million head. For this time period, the pig crop hasn’t been this large since 1971.

Yet, University of Missouri professor emeritus Ron Plain does not expect a long-term impact from this report.

Joe Kerns, who is president of Kerns and Associates, is somewhat more negative about this USDA report…

For the third quarter, Kerns also expects weakness in the hog markets. That pressure will only intensify in the fourth quarter.