Steve Meyer, Paragon Economics, predicts that high feed costs will drive pork producers’ breakeven price to the upper $40’s per hundredweight live for the rest of 2007 and into 2008. Producers dodged a bullet this year, says Meyer. He contends that the physical possession of corn will be important one day, maybe as soon as the fall of 2008.
Meyer predicts carcass hog prices ranging from $54 to $58 per hundredweight for first-quarter 2008 and $67 to $71 per hundredweight for the second quarter. He expects strong demand to support prices. He adds that porcine circovirus disease and the possibility of renewed demand from China could have an impact on the industry in 2008.