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Lower inputs benefit pork producers

Pork prices have dropped significantly in recent months – but an ag economist says one thing that will help profit margins is the cost of inputs.  Purdue University’s Chris Hurt says they’re expecting the lowest feed costs in five years.

And, he tells Brownfield he’s anticipating soybean meal prices down $120 from last year.  “That’s because the tightness in soybeans really extended into the fall crops,” he says.  “It wasn’t until we got to the US crops back last fall that world supplies were beginning to catch up with the strong demand.”

And, with lower corn prices expected in 2015, Hurt says that is also significant.  “It will help to at least maintain all the cost,” he says.  “Giving pork producers a little profitability for the remainder of the year.”