Early '06 US Hog Price Trends Viewed Analogous To 2002

[Algorem]

http://www.cattlenetwork.com/content.asp?contentid=26847

KANSAS CITY (Dow Jones)--Hog prices so far in 2006 have averaged below the levels that had been expected, and with stiff competition from large chicken supplies and expectations of expanding sow numbers, some market analysts say hog price trends through the balance of the year could track similarly with those of 2002, a year when prices made quarterly highs early then faded.

In 2002, the U.S. Department of Agriculture's reported prices in Iowa/southern Minnesota averaged the highest for the year during the first quarter at $50.98 per hundredweight on a 51%-52% lean carcass, or dressed, basis. The average for the second quarter was $47.70, and prices slipped further to an $40.09 average for the July-September period then to $39.83 for the final quarter.

Glenn Grimes, agricultural economist at the University of Missouri, says some of the similarities between now and 2002 that are issues for the hog market are growing hog supplies and large amounts of chicken available at low prices. He said concerns about bird flu in some of the key export markets for U.S. chicken have resulted in slowed international sales, resulting in large supplies and lower prices domestically. In 2002, chicken exports also declined, but that was due mainly to trade issues with Russia, which resulted in low domestic chicken prices then as well.

He predicts that hog prices will probably move up some over the next few weeks, but not by much...

[Canuckistanian]

1. OK, and that means what?

That something fishy is happening to hog prices? I thought that pork prices were overvalued....

[mike_c]

2. OMG! This is HUGH!!!111

It's gonna be an interesting 24 hours around here, I think....

[hughee99]

3. This is Les Nessman reporting ;)

sorry, couldn't help myself.

[Purveyor]

4. One of the more "real news" posts I've read today.... n't

[WCGreen]

5. Shouldn't this have been in Bacon News.....

[DaveColorado]

6. Hheehe

What the hog?

[WCGreen]

7. That is Sow ridiculous.....

[Algorem]

8. the bastards that convinced me that early '06 hog price trends would be

analogous to 2 thousand and ONE will pay for this.