UIUC Weekly Outlook: Hog Producers Follow Prudent Path

Given the hog and soybean meal price outlook for 2012, the breakeven corn price is about $6.75 to $7.00 per bushel. If corn prices stay at or below this area, hog producers could cover all costs or make a profit. If they move above this area, the 2012 profit potential could shift toward a loss, he said.

"These uncertainties suggest producers should continue to wait to expand until 2012 yields in the United States are better assured. This means expansion should not begin until mid-summer 2012," he said.