The Quarterly Hogs and Pigs Report was surprisingly bullish. Total inventory and kept for marketing categories both came in at 95-percent which was below trade expectations, kept for breeding was at 100-percent. Purdue University Economist Dr. Chris Hurt says this report confirms that even with lower corn prices and high hog prices there has not been expansion of the breeding herd.
He says the report also indicates the impact of the PEDV virus is decreasing the swine heard. He says that is based on his tracking of the monthly pigs per litter, which is down.
As a result of the number s in the report, Hurt has adjusted his price forecasts slightly for summer with an average hog price of $91. However, he still sees an increase in the herd and lower hog prices the end of 2014 into 2015.