If you have been a regular reader of our commentary we have been projecting all year China’s weekly marketings would drop 2 million head per week. 100 million less hogs re: Rabobank ÷ 52 weeks = 2 million head per week. Rabobank is projecting 600,000 metric ton increase in imports the last half of 2015. Our farmer arithmetic 22 hogs at 100 kg carcass per tonne. 22 hogs x 600,000 tonnes = 13.2 million market hog carcass equivalent. Half a year = 26 weeks. 13.2 million Hogs ÷ 26 weeks = 500,000 hogs per week. If our farmer arithmetic is correct that is the market mover for Europe and America. 300,000 head out of EU per week, 200,000 head per week from America - that is big, big, big! Not only will it cut domestic supply pushing prices higher but be the psychological boost the market needs.

This is bullish – Big Time!

Author: Jim Long, President & CEO, Genesus Genetics