IDEAS home Printed from https://ideas.repec.org/p/ags/sdsusp/32021.html
   My bibliography  Save this paper

South Dakota's Hog Market: Developments and Prospects

Author

Listed:
  • Diersen, Matthew A.

Abstract

This paper examines the developments that have occurred in South Dakota's swine industry and offers insights into its future prospects. Data, trends, and literature related to this market were gathered in an effort to fill in specific gaps about South Dakota's market. Nationally and in South Dakota there are fewer producers raising hogs. The exit of relatively small producers from the industry reduced a seasonal spike of farrowings during the March-May quarter in recent years. A growing trend of inshipments, where feeder pigs are brought into South Dakota, finished, and marketed, has partially offset the reduction in farrowings. An analysis of a longstanding indicator of supply, farrowing intentions, reveals that the closer intentions reported were more accurate than the distant intentions and that the overall accuracy is impressive. The general price level for market hogs at Sioux Falls follows a similar pattern to U.S. prices. A seasonal trend exists at Sioux Falls, with prices higher from May through August. Analysis of location basis, the difference between the CME Lean Hog Index and the cash price at Sioux Falls, with prices higher from May through August. Analysis of location basis, the difference between the CME Lean Hog Index and the cash price at Sioux Falls, also reveals a seasonal trend and substantial variablity across different months. Knowledge of basis is necessary when comparing different markets and when determining the effectiveness of risk management tools.

Suggested Citation

  • Diersen, Matthew A., 2001. "South Dakota's Hog Market: Developments and Prospects," Economics Staff Papers 32021, South Dakota State University, Department of Economics.
    • Handle: RePEc:ags:sdsusp:32021
    DOI: 10.22004/ag.econ.32021
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/32021/files/sp01-02.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.32021?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David E. Runkle, 1991. "Are Farrowing Intentions Rational Forecasts?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(3), pages 594-600.
    2. John D. Lawrence & Erda Wang, 1998. "Motivations for exiting hog production in the 1990s and incentives for re-entry," Agribusiness, John Wiley & Sons, Ltd., vol. 14(6), pages 453-465.
    3. James M. MacDonald & Michael E. Ollinger, 2000. "Scale Economies and Consolidation in Hog Slaughter," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 334-346.
    4. Parcell, Joseph L. & Mintert, James R. & Plain, Ronald L., 2004. "An Empirical Investigation of Live-Hog Demand," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(3), pages 1-15, December.
    5. Phil L. Colling & Scott H. Irwin, 1990. "The Reaction of Live Hog Futures Prices to USDA Hogs and Pigs Reports," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(1), pages 84-94.
    6. Colin A. Carter & Carl A. Galopin, 1993. "Informational Content of Government Hogs and Pigs Reports," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(3), pages 711-718.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jacqueline S. Welles & Noelle Cielito T. Soriano & Freda Elikem Dorbu & G. M. Pereira & Laura M. Rubeck & Erica L. Timmermans & Benjamin Ndayambaje & Alison V. Deviney & John J. Classen & Jacek A. Koz, 2021. "Socio-Economic and Governance Conditions Corresponding to Change in Animal Agriculture: South Dakota Case Study," Sustainability, MDPI, vol. 13(19), pages 1-19, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Frank, Julieta & Garcia, Philip & Irwin, Scott H., 2008. "To What Surprises Do Hog Futures Markets Respond?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 73-87, April.
    2. Garcia, Philip & Irwin, Scott H. & Leuthold, Raymond M. & Yang, Li, 1997. "The value of public information in commodity futures markets," Journal of Economic Behavior & Organization, Elsevier, vol. 32(4), pages 559-570, April.
    3. Ying, Jiahui & Shonkwiler, J. Scott, 2017. "A Temporal Impact Assessment Method for the Informational Content of USDA Reports in Corn and Soybean Futures Markets," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258201, Agricultural and Applied Economics Association.
    4. Olga Isengildina-Massa & Berna Karali & Scott H Irwin, 2017. "Do Markets Correct for Smoothing in USDA Crop Production Forecasts? Evidence from Private Analysts and Futures Prices," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(4), pages 559-583.
    5. Smith, Vincent H., 1998. "Measuring the benefits of social science research," Impact assessments 2, International Food Policy Research Institute (IFPRI).
    6. Carter, Colin A., 1999. "Commodity futures markets: a survey," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 43(2), pages 1-39, June.
    7. Jeffrey B. Mills & Ted C. Schroeder, 2004. "Are cattle on feed report revisions random and does industry anticipate them?," Agribusiness, John Wiley & Sons, Ltd., vol. 20(3), pages 363-374.
    8. Klomp, Jeroen, 2020. "The impact of Russian sanctions on the return of agricultural commodity futures in the EU," Research in International Business and Finance, Elsevier, vol. 51(C).
    9. Isengildina, Olga & Irwin, Scott H. & Good, Darrel L., 2004. "Does The Market Anticipate Smoothing In Usda Crop Production Forecasts?," 2004 Annual meeting, August 1-4, Denver, CO 20145, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Pritchett, James G. & Thilmany, Dawn D. & Johnson, Kamina K., 2005. "Animal Disease Economic Impacts: A Survey of Literature and Typology of Research Approaches," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 8(1), pages 1-23.
    11. Berna Karali & Scott H. Irwin & Olga Isengildina‐Massa, 2020. "Supply Fundamentals and Grain Futures Price Movements," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(2), pages 548-568, March.
    12. Adjemian, Michael K. & Johansson, Robert & McKenzie, Andrew & Thomsen, Michael, 2016. "The Value of Government Information in an Era of Declining Budgets," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235811, Agricultural and Applied Economics Association.
    13. Isengildina-Massa, Olga & Cao, Xiang & Karali, Berna & Irwin, Scott H. & Adjemian, Michael & Johansson, Robert C., 2021. "When does USDA information have the most impact on crop and livestock markets?," Journal of Commodity Markets, Elsevier, vol. 22(C).
    14. Dhuyvetter, Kevin C. & Schroeder, Ted C. & Parcell, Joseph L., 1997. "The Effect of USDA Cattle on Feed Reports on Feeder Cattle Futures Prices," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35751, Western Agricultural Economics Association.
    15. Jean-Philippe Gervais, 2011. "Disentangling nonlinearities in the long- and short-run price relationships: an application to the US hog/pork supply chain," Applied Economics, Taylor & Francis Journals, vol. 43(12), pages 1497-1510.
    16. Ollinger, Michael, 2009. "The Cost of Food Safety Technologies in the Meat and Poultry Industries," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 48783, Agricultural and Applied Economics Association.
    17. Aguero, Jorge M. & Gould, Brian W., 2004. "Structural Change In U.S. Cheese Manufacturing: A Translog Cost Analysis Of A Panel Of Cheese Plants," 2004 Annual meeting, August 1-4, Denver, CO 20274, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Isengildina, Olga & Irwin, Scott H. & Good, Darrel L., 2013. "Do Big Crops Get Bigger and Small Crops Get Smaller? Further Evidence on Smoothing in U.S. Department of Agriculture Forecasts," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45(1), pages 1-13, February.
    19. Lusk, Jayson L., 2016. "From Farm Income to Food Consumption: Valuing USDA Data Products," C-FARE Reports 266593, Council on Food, Agricultural, and Resource Economics (C-FARE).
    20. Isengildina-Massa, Olga & Irwin, Scott H. & Good, Darrel L. & Gomez, Jennifer K., 2008. "The Impact of Situation and Outlook Information in Corn and Soybean Futures Markets: Evidence from WASDE Reports," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 89-103, April.

    More about this item

    Keywords

    Livestock Production/Industries;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:sdsusp:32021. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/edsdsus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.