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Bigger hog numbers on the way

The number of hogs coming to market over the next three months could be even greater than expected.

The market hog inventory figure in Friday’s hogs and pigs report, at nearly 65 million head, was up 3 percent from last year and higher than pre-report estimates.

Meat industry consultant Bob Brown of Edmond, Oklahoma says the nation’s hog slaughter capacity will be tested.

“It’s just going to be a very difficult period of three or four months,” Brown says. “I think that we likely won’t back off of capacity issues until mid-January or so. So it’s just going to be ‘batten down the hatches’ and do the best you can.”

Brown expects cash hog prices to continue to slide. He predicts a fourth quarter average of 53.50 on a lean basis, compared to 62.50 a year ago.