Higher feed costs and corn prices are forcing farmers to slaughter hogs at a faster pace since the animals are literally eating their profits.
“The 73.3 million hogs processed in eight months through August were the most in three years, U.S. Department of Agriculture data show. Pork supply will drop to the lowest per-capita since 1975 next year, the USDA estimates,” Bloomberg reported.
“It’s only going to get worse on the higher feed prices,” Mark Greenwood, vice president at AgStar Financial Services, said in the article.
Teucrium Corn Fund (NYSEArca: CORN) is up nearly 30% the past three months on the drought. [Corn ETF is Standout Performer in Third Quarter]
Corn prices are so high that cattlemen are reportedly feeding cows candy and orange peels to replace the starchy sugar content of corn.
iPath Dow Jones-UBS Livestock Subindex Total