38 The Business of Canadian Hog Farming Better Pork | April 2024 Moe’s Market Minute INSIDE THE HELIX A Podcast from DNA Genetics. When economic times are tough, you need a sow that consistently outperforms expectations. The DNA Line 241 will save you money with industry-leading feed conversion. Whether through feed intake or feed conversion in gestation, our maternal line is the solution you’re looking for. Especially during times where every dollar matters. Visit with an account representative to learn how you can achieve the biggest bang for your buck. FEED CONVERSION MATTERS. WHEN TIMES ARE TIGHT, dnaswinegenetics.com PIGCHAMP.COM/BENCHMARK-MAGAZINE Sign up to receive a printed copy of the 2024 edition of Benchmark Magazine. MOE AGOSTINO & ABHINESH GOPAL Maurizio (“Moe”) is chief commodity strategist with Farms.com Risk Management and Abhinesh is head of commodity research. (USDA) may have been overestimating the U.S. hog breeding herd and the pigs saved per litter numbers in the last two quarterly Hogs and Pigs reports of 2023 as U.S. hog slaughter at the start of 2024 came in about 2.5 per cent lower Y/Y, likely indicating a shortage of market-ready hogs. Since the second quarter of 2023, the market has been focused on increased U.S. sow slaughter, but the USDA breeding herd inventory updates do not seem to have done justice to the magnitude of sow liquidation in 2023. Despite productivity increases, this spike in pig litter sizes may be overestimated given that the sow herd was shrinking in the second half of 2023. Multiple fundamental factors are in place for a sustained rally that should support the bullishness in hog futures. If the “Big C” (China) joins the demand-king, Mexico, in purchasing more U.S. pork, it could be a banner year. All these reasons could force summer 2024 hog futures to peak in the $110 to $120/cwt range. BP
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