Larger U.S. hog herd expected in USDA report

By Bob Burgdorfer

CHICAGO (Reuters) - There are more hogs on U.S. farms this year due to producers expanding herds after years of profits and to struggling Canadian producers shipping more hogs to the United States, livestock analysts said.

The United States Agriculture Department will release its quarterly hog report at 2 p.m. CST (2000 GMT) on Thursday, and analysts surveyed by Reuters unanimously expect it to show more hogs than a year ago.

Much of the increase will be due to U.S. producers responding to years of profits by expanding herds, but also analysts widely expect USDA to revise upward hog numbers from previous reports.

Analysts on average expect USDA to show the December 1 hog herd at 103.5 percent of a year ago, with estimates ranging from 102.7 to 104.8; the breeding herd at 101.1 percent, from a range of 100.4 to 101.8; and the market hog supply at 103.7, from a range of 102.9 to 105.3.

"We are still expanding," Ron Plain, University of Missouri agricultural economist, said of the larger herd.

Hog producers have had several profitable years, and as a result they built barns and added more hogs, analysts said.

Also, high feed prices have hurt the Canadian hog industry and it has been sending more hogs to the United States.

Year-to-date to December 15, Canada shipped nearly 2.689 million slaughter hogs to the United States, up 22 percent from the same period in 2006. Also, it shipped 6.18 million feeder pigs, up 9.6 percent from the same period in 2006.