November 10, 2010

 

Iowa's 19 million hogs pig out on new corn crop

Iowa's 19 million hogs are pigging out on newly harvested corn that apparently tastes much better than last year's corn.

 

Contrary to their image, hogs won't eat just anything. Hog producers say the corn from the 2009 harvest was soggy and moldy. The feed from that corn turned hogs into picky eaters, and they gained weight more slowly than usual.

 

But this year's naturally dried corn coming off the harvest is considered some of the best quality in recent years. "The corn is so good this year that the hogs are taking second helpings," said Carroll hog producer Ron Juergens.

 

"Hog weights are up four or five pounds per animal in recent weeks, so at a kill rate of about two million hogs per week, that adds up to a lot more pork on the market," said Howard Hill, chief operating officer of Iowa Select Farms of Iowa Falls, a major hog producer.

 

Iowa's feed corn is tastier this year because the corn that survived the July rains has taken advantage of the dry conditions in September and October to mature in the field.

 

Farmers say most corn this year has come off the combine at the requisite 15% moisture, so grain drying this year is not needed.

 

Last year, wet weather at harvest time made the harvested corn soggy. Moisture content in the kernels was 25% or more, requiring drying to bring it to the 15% moisture level needed for No. 2 quality required by feed producers.

 

Corn eaten by hogs is a far cry from the summer sweet corn beloved by Iowans, which has up to 90% moisture. The drier feed corn can be likened more to cereal than corn on the cob.

 

"The wetter corn is harder to combine and has more small pieces. And drying probably takes away some of the taste. It just isn't as good quality as corn that dries in the field," said Shane Ellis of Iowa State University.

 

Hill said cooler weather stimulates hogs' appetites. "In the fall, hogs normally eat all the time. Last year they didn't because the feed wasn't as good," he said.

 

When taken to market after their 110-day feeding periods, hogs frequently were below the 270-pound average weight that is the target for producers and slaughterhouses.

 

Lower hog weights meant less pork in the freezers, which in turn drove up hog prices by 25% or more during the first half of this year.

 

This year, as hogs began to chew through this year's tasty corn crop beginning in September and showed up bigger at slaughterhouses, the USDA reported a 10% increase in the supply of pork in commercial storage freezers.

 

That, in turn, pushed down the price for hog futures for December delivery from US$75-$78 per hundredweight in mid-June to US$67.50 Monday (Nov 8) on the Chicago Mercantile Exchange.

 

Because feed costs are rising due to the increase in corn futures from US$3.50 in June to US$5.86 Monday (Nov 8) on the CBOT, hog producers are expected to cut back their farrowings (or births) in coming months.