Jump of 25% in CME corn price over last two weeks is further squeezing projected hog producer margins for 4Q and into 2013. Break-even prices north of $85 and current hog futures prices October and December point to projected losses of $16 or more/animal, says Shane Ellis, agricultural economist at Iowa State University. Futures prices around 79c-80c/pound for December indicate producers who didn't hedge feed costs will have deep deficit unless corn prices decline or demand for hogs increases significantly, he says. Producers are unable to trim production for fall-early winter because pigs to be processed then are already born. (curt.thacker@dowjones.com)

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(END) Dow Jones Newswires

June 29, 2012 14:03 ET (18:03 GMT)