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| You asked for opinions so heres mine.
Custom feeding contracts won't go away because of $3.00 corn. The building is there. Somebody will produce pigs. The pigs will be fed until there is more money lost by feeding and selling the pig than the alternative of euthanizing the pigs and leaving the building empty. The second alternative happened in the 98/99 debacle.
Typically what happens is corn goes up high enough that hogs lose money. Weights and numbers come down. Creating a lower supply which eventually raises prices high enough for profitability. This leads to expansion and eventually lower prices. The hog cycle has typically been 4 yrs.
Slaughter weights were slowly coming down before the Swift raids. Haven't heard weights lately but I would believe that they will probably be going up if everyone is as backed up as it is around here.
Planning ahead for feeding $3+ corn is probably a sound idea. Planning ahead for selling $3+ corn is probably not sound. I do not believe in the new plateau. Corn can go down just as fast as it came up.
Capitalism works everytime the goverment keeps their hands off of it. | |
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Future of feeding hogs
