Lean Hogs Prices Explained

As you can see lean hogs prices are fluctuating. But why is that? And is there a way to predict the price of lean hogs?

Why are lean hogs prices fluctuating?

Lean hogs’ volatility in the market is quite evident and here are the emerging factors:

1. Supply and Demand

One crucial factor in lean hogs’ shifting price is the contrasting supply and demand in the market. Just like any top commodity, when the demand and supply are high, its’ price surges. Similarly, when the supply is high but the demand isn’t aligned,  prices will fall affecting the economy. 

2. Market Predictions

Speculators’ role in the market is one element in lean hogs’ cost. Most of them make a profit by forecasting prices according to their favor bringing considerable fluidity to the market.

3. Production Costs

Farmers are one of the deciding factors in lean hogs’ fluctuating prices. The rise in feed, labor, transportation; and other expenses prompted farmers to increase their lean hogs’ produce to maintain a stable profit. 

3. Weather Conditions

Drought, floods, or storms can affect the price of hogs. The supply chain of hog production will be delayed or worst put to a stop depending on the severity of the weather conditions causing the prices to spike.

4. Trade Policies

The frequent emergence of African swine fever make international and local trade policies even stricter and imposed tariffs on exports. These two and other underlying factors get a hand in lean hogs’ price fluctuation. 

Which variables impact the price of lean hogs?

• Supply and Demand
• Feed Prices
• Inventory
• Export Demand
• Consumer Preferences
• Processing Capacity

Where do lean hogs come from?

Believed to be the first traditional agricultural commodity to be traded exclusively, lean hogs are domesticated specifically for meat production.

They are raised in hog farms or pig farms in the Midwest with Iowa being the leading producer among the states followed closely by Minnesota, North Carolina, Illinois, and Indiana.

Typically, the lean hogs’ life cycle beings in a breeding facility where a female pig ( sow ) is impregnated, gives birth to a litter of piglets, is weaned from their mothers and is moved and raised to a nursing facility until they turn 50 pounds.

From there, they are transferred to the finishing facility and groomed until they reach 240 pounds, the standard weight for the harvesting phase. They will be transferred to a processing plant where they will be slaughtered, processed, and packaged for distribution and consumption. 

When is the lean hogs season?

Just like eggs, lean hogs are raised and produced all year round.

Consumers can enjoy its’ consistent supply along with its’ seasonal price increase, particularly during summer as people like to go on picnics, swimming, or any outdoor activities that involve cooking and grilling.

There is no specific season for lean hogs as their availability is present throughout the year coupled with fluctuating prices.