The world economy and demand for pork will play a key role in influencing live hog prices in 2011. University of Missouri agricultural economist Dr. Ron Plain says if the world economy can grow then we've got quite a few more months of prosperity in the hog business. But, if the economy doesn't do well, Plain warns these badly needed profits could start to fade away quicker than we want them to.
Plain notes that bacon and pork bellies have experienced record prices this summer. He says that bacon seems to be an "in" food right now, moving lots of that product and it helped push the cutout value of U.S. hogs to record levels. But, hams continue to be a bit of a softer price situation, not doing quite as well.
Of the competing meats, Plain says it looks like beef production is going to be down again next year so the total supply of meat on the market is going to be pretty tight again in 2011.
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