Several factors are driving the positive outlook in the hog market, according to Bill Polovin and Dave Delaney of Ever.Ag.
“The summer months have been fueled by what I’m going to call managed money,” Polovin says. “We’ve had some good fundamental strength, but I would say the futures are in front of that fundamental market right now.”
He notes August trading up over $107, a cut out market possibly north of $114, and a cash market that gets $108 to $109 weighted average.
“We’re starting to see the managed money assert themselves in a very positive manner for our futures market,” Polovin adds. “That’s obviously adding good possibilities for our producers.
Supply and Demand
Delaney says the supply and cash market look good, but the demand side needs to get better still. He sees supply remaining steady with not a lot of expansion or people exiting the industry, which he attributes to better health.
“I think the productivity that we see in these sows, we have not hit the peak in potential,” he says. “If we get a clear runway and a healthy industry, we could make a lot of pigs.”
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