AgLetter: January 1996

A December survey by the U.S. Department of Agriculture found that hog numbers have moved back up above the year-earlier level and that further expansion will likely occur in the months ahead. The indicated expansion that occurred last fall was a surprise to many observers who had assumed that breeding problems during last summer’s heat wave would extend the downturn in hog numbers that started last spring. Even more surprising was the indication that the expansion will extend into the first half of this year, despite very high feed prices and the likelihood of sizable operating losses for many producers.