Source: FARM DOC DAILY, UNIV. OF ILLINOIS, 6/5/17

For agricultural commodities, larger supplies generally result in lower prices. This year's hog market is going against that adage with both larger supplies and higher prices. Before we conclude that something is wrong, remember that prices are determined by both supply and demand factors. A closer look at both factors explains why the hog market is being rational with larger supplies and higher prices.

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