Analyst predicts $10 hogs later this year
Swine slaughterhouses are already running at capacity
prompting analyst predictions that hog prices could plummet to $10 per
hundredweight later this year, reminiscent of the liquidation of 1998.
Credit Suisse food stocks analyst Robert Moskow, said in a note to
investors that more hogs will go to slaughter this autumn because the herd is too
large, citing USDA's June Hogs and Pigs report that showed a 5.8 percent
increase in the herd. By comparison, market analysts had expected the report to
show about a 4.6 percent increase.
Sow farrowings in the March-May period
are up 2 percent over the same period last year, "which means the pig
crop will be bigger, not smaller in the autumn" he stated. Subscribe here
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