Hog Production Profitability

We have constructed an index of hog profitability which uses futures market values and adjusts for the advancement of hog production efficiency. Note that the index currently suggests hog profitability is good enough that we can expect a modest inventory expansion in 2025. We have also charted the traditional hog corn ratio based on CME  futures market quotes.  The ratio suggests a somewhat less favorable, but still marginally profitable situation for hog farmers. 

Our index is based on farrow to finish operations. In last month’s USDA industry survey hog farmers indicated they planned just a 1% expansion in the number of sows farrowing in the first half of 2025. Sows and gilts currently being bred will farrow in Mid May 2025.