Feed Costs Force Pork Producers to Make Tough Decisions as Hog Futures Hit 7-Year High

Some pork producers are liquidating herd numbers just as prices are rebounding. The cause: rising feed costs. As restaurants reopen, traders are seeing higher market prices based on stronger demand. Last week’s hog futures was at the highest price point since August 2014. Unfortunately, with $7-$8 cash corn prices it has been a lot harder for producers to justify it as a feed option. Despite recent softening grain prices in the last two weeks, hog farmers have been exploring herd liquidation options as profit margins shrink. Get the full market condition break down.