Packer capacity influencing livestock prices
Profits may be elusive for both hog and cattle producers right now, but the story is expected to take two different twists in the months ahead, largely due to packer capacity.
“We’ve got a glut of hogs, and hog prices have taken it hard in the cash market,” said Shane Ellis, a farm consultant with Latigo Strategic Management. “There’s reason for optimism, though, especially with the new packing plants coming online in Iowa.”
U.S. farmers have produced nearly 4 million more hogs (an approximately 3.2 percent increase) in 2018 compared to 2017. Iowa-Southern Minnesota hog prices have plunged roughly 40 percent in the past...
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