Corn-Hog Ratio


Related Articles


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]

Error creating thumbnail
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]

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki