Harrington's Sort & Cull
John Harrington DTN Livestock Analyst

Wednesday 06/27/12

Why H&P May Stand for "Hooey" and "Pointless"

If you shred all the paper the USDA will use this Friday in publishing the acreage report, June 1 grain stocks, and the hogs and pigs quarterly inventory, New York City could stage a ticker tape parade worthy of World Series champions.

Indeed, many of us think that such a plan would make great sense, especially if these market-taunting reports could safely hit the shredder unread.

A preemptive recycling of the hog report may be an absolute no-brainer given the tremendous shift seen in feed production potential since June 1 (i.e., when the gov started counting snouts and tits).

The price of new-crop corn has rallied no less than $1.23 (basis December) since the first of June. If it takes roughly 12.3 bushels of corn to finish a 40 pound feeder pig, that means between the time the report was assembled and finally released for public consumption, pork producers experienced a $15-per-head increase in breakevens.

The critical arithmetic of pork production has changed mightily in just four short weeks, probably enough to make the new inventory numbers now set for late-week presentation as trustworthy as the latest scheme to save the euro zone, balance the federal budget, or painlessly solve global warming.



Posted at 5:09PM CDT 06/27/12 by John Harrington
Comments (2)
What is the difference between a hog and a pig? Anyway!
Posted by james earl at 5:35PM CDT 06/28/12
i would think they both r the same, they both eat
Posted by Unknown at 10:44AM CDT 06/29/12
Post a Blog Comment:
Your Comment:
DTN reserves the right to delete comments posted to any of our blogs and forums, for reasons including profanity, libel, irrelevant personal attacks and advertisements.
Blog Home Pages
August  2015
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31               
Subscribe to Harrington's Sort & Cull RSS
Recent Blog Posts
  • Mandating Voluntary?
  • The Bearish Guns of August
  • The Fireworks of Pork Exports
  • Between Bark and Bite
  • Trans-Pacific Partnership as Hobson's Choice
  • No Country of Origin for Congressmen
  • Broken-Mouth Ranchers
  • Cattle Traders Look for Irish Blessing
  • A Budget-Minded Memorial Day
  • New Big Bets on Hog Expansion
  • May, the Forgotten Front-Month Contract
  • Fat Lady on The High Wire
  • Cattle Futures Catch the Bird Flu
  • Go Away Kid, You Bother Me
  • Trading the Vernal Equinox
  • Western
  • A Bucket Of Mixed Burgers, Please
  • So Where Did The Calves Come From?
  • The Conflicting Signals Around Agriculture and Climate Change
  • Don't be a Victim of Rural Crime