Tomorrow’s Hogs and Pigs report from USDA will be highly interesting as it will reflect six months of post-COVID-19 impacts on the U.S. hog and pork industry. The trade is expecting a 1 percent reduction in the total U.S. hog herd and a 2 percent reduction in the breeding herd. These expectations are based on poor production margins and producers’ stated intentions to reduce farrowings this fall.  WPI, however, expects an increase in U.S. hog inventories and a bearish report from USDA. Our forecast is based on the apparent backlog in market hog slaughter and better-than-expected producer profits this fall. Our models suggest the economic incentives have been for producers to expand production rather than liquidate and that...

TAGS – Livestock, North America