Posted 12/6/2023, 11:30:00 AM
Hog Producers Face Slim Margins Amid High Costs and Weak Demand
- Hog prices at 3-year lows, with producers facing potentially the worst 2-year stretch ever for profitability
- Higher input costs like feed and fuel, along with ample hog supplies, squeezing margins
- Sluggish domestic pork demand and loss of key export markets like China challenging industry
- California's Prop 12 creating additional burdens and uncertainty around housing standards
- CME Lean Hog futures trading has climbed to highest levels since 2019 as risk management increases