Corn/hog Ratio

Categories: Futures,

A longstanding and reliable indicator of future pork prices and production changes based on the relationship between the price of hogs and the price of corn. The ratio is determined by dividing the current price of live hogs per 100 pounds by the price of a bushel of corn. A high ratio, above 20, is an indication that hog production will increase in the future with a corresponding drop in prices.