Pigs Get Pounded on Big Supplies

On Thursday, the USDA released its Quarterly Hogs & Pigs Report, which showed a national pig herd that was 4% bigger than last year, and a record high for this time of year.

Hog producers are currently expanding operations, often locking in profit margins on the futures markets by pre-selling their expected production.

This news, coupled with weak demand, has knocked hog futures to the lowest level in almost three months, with April futures trading Friday at 65 cents per pound.

Typically, the Easter holiday provides a spark to the market as consumers buy hams, providing hope to some pork producers that prices may rebound in the next two weeks.