CHICAGO – Illinois hog producer Mike Dumoulin has no intention of expanding his herd.
Many hog producers like him across the United States are in the same boat, as crippling feed costs restrict the growth of hog herds at a time when pork exports are surging, especially to China where tight supplies are fueling food inflation.
Their decision not to invest money to breed more hogs was reinforced on Thursday when the U.S. government reduced sharply its estimate of the corn crop to be harvested this fall. That sent corn futures prices up the daily trading limit of 30 cents per bushel.
Analysts expect corn prices to climb even further as they argue that more damage had been done to the corn crop by high heat than stated by the U.S. Department of Agriculture.
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