. Agri-news. Agriculture. Phone: (403) 427-2121. CO 00 CO0000CO CO April 5,1993 Hog market strength pleasant surprise So far in 1993, the price strength in hog markets has been a pleasant surprise to most producers says an Alberta Agriculture market analyst. "It's also been an embarrassment to the majority of traders and analysts who predicted flat to lower prices in the first quarter of 1993," says Ron Gietz. 'Those predictions were based on higher slaughter volumes, about three per cent above 1992 levels," he adds. This slaughter volume estimate was based on a United States De
. Agri-news. Agriculture. Phone: (403) 427-2121. CO 00 CO0000CO CO April 5,1993 Hog market strength pleasant surprise So far in 1993, the price strength in hog markets has been a pleasant surprise to most producers says an Alberta Agriculture market analyst. "It's also been an embarrassment to the majority of traders and analysts who predicted flat to lower prices in the first quarter of 1993," says Ron Gietz. 'Those predictions were based on higher slaughter volumes, about three per cent above 1992 levels," he adds. This slaughter volume estimate was based on a United States Department of Agriculture (USDA) December 1 Hog Inventory Report that indicated a modest expansion was continuing. However, kill levels dropped below 1992 levels—the exact opposite of what would have been expected based on the December hog report. 'There are two possible explanations," says Gietz. "that the USDA December report was wrong, or that some special condition caused a temporary decline in slaughter levels. 'The market," he adds, "is leaning towards the first explanation. According to this train of thought, the USDA missed a turning point in the hog cycle and the American swine herd is well into a ; Gietz notes that the second explanation also merits consideration. One reason is the credible track record of the USDA's Hog Inventory Reports. Second, a large amount of anecdotal evidence points to poor performance in hog barns. Factors named include variable temperatures, high humidity and low quality corn and soymeal. A third reason is that producers are striving for heavier slaughter weights. In combination with performance problems, this could add up to a temporary slaughter reduction. 'The ultimate test of the two theories will be whether or not slaughter volumes begin to climb above year-ago levels by late April or early May," he says. Contact: Ron Gietz 427-5376 NISA changes make program more efficient and use
Size: 2113px × 1183px
Photo credit: © Library Book Collection / Alamy / Afripics
License: Licensed
Model Released: No
Keywords: ., bookcentury1900, bookco, bookleafnumber89, booksubjectagriculture
