Date of this Version
Pork producers have the opportunity to have a very profitable year, even through the summer of 2005. Using the Lean Hog Futures Contract and the futures contracts for corn and soybean meal, all adjusted for basis, the average margin per hog improved from mid- April and mid-May by $4.75 per head. To be sure, the volatility in feed and hog markets makes for sizable swings in margins. The change of $4.75 per hog amounted to a 33 percent increase in margin in a 30 day period.