Every number except two was larger than its respective average from Urner Barry’s pre-report survey of hog market analysts.

The abrupt end to the cash hog market rally early this summer is a negative sign. As stated last month, hedging production is highly advised.

According to Iowa State University calculations, the cost of production for hogs marketed in May was $46.84 per hundredweight (live) or $62.46 per hundredweight (carcass). This was the highest monthly cost in the Iowa series since August 2015.

Our admonitions from last month stand: Know your costs. Study your balance sheet to determine just how much risk you can stand. Examine your head to do the same.

The typical Iowa farrow-to-finish operation lost $22.17 per head marketed during April by ISU calculations. April net returns were the worst since November 2016.

Hog slaughter is running at bit lower than the level indicated by the heavy weight inventory in the March pig report (up 3.40% versus up 3.76%).

Hogs & Pigs report neutral to hog market while China’s tariff announcement pressures hog prices.

In my opinion, this is a bump in the road with a wake-up call embedded in the message.

The key to success with any strategy is to determine a plan that is based on a tangible goal or objective — such as protecting a minimum level of profitability — which makes sense for your operation.