By Joanna Levin
THE US hog industry remains in serious depression as a combination of oversupply and a lack in demand overshadows the industry.
The availability of cheaper feed caused by the drop in grain prices has failed to drive the hog market higher.
Futures prices slumped earlier in the week but crept up 0.45¢ to 41.20¢/lb by Wednesday 26 August for October contracts. This was down from about 44¢/lb the previous week.
The recovery in futures is expected to be short-lived and cash prices remained low. By Tuesday, the cash hog prices had dropped 2¢/lb on the week to 34¢/lb at the terminals and 33-34¢/lb in the active Iowa market.
An increase in the number of hogs being offered for slaughter has enabled packers to drop their bids for live animals. An unusually high 1.92 million hogs are expected to be slaughtered in the US this week, but this could be curtailed by the impact of hurricane weather conditions in North Carolina.