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.

http://www.feelofthemarket.com/…

(AG/CZ)

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
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