The recent decline in corn prices is providing relief to hog raisers who continue to suffer falling prices for hogs and culled sows. The latest numbers from the National Federation of Hogs Farmers (NFHF) show that corn, which constitutes half of the total inputs in feed manufacture, currently fetches between P10.60 and P10.90 per kg in Bulacan, Rizal and Laguna. This is significantly lower than its previous price of P11.25.

Nationwide, prices of prime hogs and culled sow continue to soften apparently due to seasonal factors. Based on the monitoring reports of the NFHF, as of August 2, prime hogs averaged P76.06 per kg for commercial farms and P73.54 per kg for backyard raisers. After peaking at more than P73 per kg in early March, the price of prime hogs has been on the downswing. The price of culled sow is also down to P56.80 per kg, from its March 29 peak price of P73.25 per kg.

Hog raisers have been crying foul over the continuing fall in prices, blaming manipulations from traders or viajeros. A study from the Department of Agriculture, however, indicate that the downswing may have been partially due to seasonal factors or the regular cycles in the business. According to the department's study, the seasonal factors index for hogs for slaughter is close to 98 in July and August, a two-percentage point decline from its "natural price" or when there are no seasonal factors. The seasonality index for pork is usually highest from April to June as supply tends to tighten vis-a-vis demand.

The seasonality index for yellow corn is down to 96.02 and 91.63 in July and August, representing a drop of 4 and 8 percentage points, from their natural price. Yellow corn's seasonality index usually remains below 100 until December, indicating that hog raisers would continue to enjoy cheaper feed grains in the next few months of the year.

The price of soya, however, remained unchanged from P19.80 to P22.50 per kg in Batangas, Laguna and Bulacan.