Dennis did not reference the Hog Cycle and the evidence that seems to be building that suggest we are in the expansion phase. Of all the production cycles, the hog cycle has been observed for a longer period of time and it has reoccured with greater consistency than any other production cycle.

There is a good possibility that this expansion phase of the hog cycle is not going to end well for some producers.

Producers have already put in place their farrowing plans for the next three to six months. This means that the kill rate for the next seven to ten months is pretty much set. Looking at the increased numbers we are currently seeing, it is doubtful that we will be seeing smaller numbers. In fact they may be fairly large numbers.

Best wishes,

dhm