Corn-Hog Ratio

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The Corn-Hog ratio is the ratio between the price of a bushel of corn and 100 lbs (1 cwt) of live market hog. The ratio is important as an indicator of the profitability of pig farming, because corn prices are an important component of livestock feed, and therefore a major cost of raising a pig. Traders use the hog ratio as a quick tool for determining hog margins and predicting future pork prices. [1] If the ratio is less than 1:12, hog production is believed to be unprofitable; above 1:12, it is.[2]

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Corn-Hog Ratio plotted using FutureSource[3]

This chart shows how the corn-hog ratio has deteriorated since 2006. The price of a bushel of corn has rose much more relative to the price of 1 cwt of hog.[3]

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