Livestock Live Hog and Broiler Prices Again Head in Opposite Directions Domestic hog prices continued to remain under pressure last week from excess market supply and edged down by .9 percent. That amounted to a week-on-week decrease of RMB .13/kg ($.02/kg) or RMB .06/lb. ($.009/lb.). Lower prices further expanded the average operating loss per live pig by 18.4 percent or RMB 16/head ($2.46/head). On the futures market, the September live hog contract on the Dalian Commodity Exchange ended last week down RMB 1,005/MT ($154.62/MT) from the previous week’s settlement price to close at RMB 15,860/MT ($2,440/MT). That resulted in the hog-corn ratio finishing at 6.24, well below where China’s central government has indicated it wou...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.