Time to Act: Hog Crush Margins Offer Rare Hedging Window

As of mid-July, the December 2025 hog crush remains historically strong, hovering near the $60–63 range despite a brief pullback early in the week. For producers, this is a signal worth taking seriously. Especially if you have been on the fence about utilizing futures hedging in the past.

Margins in this zone have historically provided favorable opportunities for forward-looking risk management. The chart above, aligned with historical crush models, shows we’re currently operating in the upper end of the long-term profitability range—a level rarely sustained for long.

While market optimism may be high, producers are reminded that strong historical margins don’t last forever. The current environment continues to offer opportunities for structured margin protection heading into Q4.

One of the major benefits of using futures hedging is, when the markets allow, you can look months into the future and choose to lock in the gross margins that work for you.

Allowing you to focus on being a more efficient producer, as opposed to worrying about the market.

Maintaining Flexibility in a Volatile Market

Producers evaluating risk management decisions may wish to explore tools that help balance margin protection with market flexibility. In volatile markets, many operators incorporate strategies that allow for adaptability in case of changing feed costs or hog prices.

Every operation is different, and selecting the right risk management approach depends on your specific goals, costs, and market exposure. Consult with a qualified risk advisor to determine how current crush values align with your operation’s targets.