are caused by changes in demand and supply.
The most important fundamental change came in supply, he said. Producers who were losing a fortune during the downturn slashed the size of their herds. The U.S. hog population, for instance, has fallen 6.2 percent from its peak at the end of 2007, even as the nation's human population kept growing, Plain said.
The same trend has affected "the whole meat complex," he observed. "Pigs aren't doing this by themselves. We've downsized cattle. We've downsized chicken. We've downsized the turkey industry."
Rising exports and relief from last year's swine flu scare also gave the market a boost. "You've got to feel good about hogs," Plain said.
Comments