Demand for Weaner/Feeder Pigs Pushes Cash Prices Higher

November 27, 2017 09:12 AM
 
With the Thanksgiving holiday, cash-traded weaner pig and feeder pig volume was below average last week.  Weaner volume was 75% of the 52-week average.

This market update is a www.porkbusiness.com weekly column reporting trends in weaner pig prices and swine facility availability.  All information contained in this update is for the week ended November 25, 2017.

11.27.17 chart

Looking at hog sales in May 2018 using June 2018 futures, the weaner breakeven was $69.06, up $3.47 for the week. Feed costs were up $0.33 per head. June futures increased $1.85 compared to last week’s June futures used for the crush and historical basis is unchanged from last week. Breakeven prices are based on closing futures prices on November 22, 2017. The breakeven price is the estimated maximum you could pay for a weaner pig and breakeven when selling the finished hog.

Note that the weaner pig profitability calculations provide weekly insight into the relative value of pigs based on assumptions that may not be reflective of your individual situation. In addition, these calculations do not consider market supply and demand dynamics for weaner pigs and space availability.

From the National Direct Delivered Feeder Pig Report

Cash-traded weaner pig volume was below average this week with 27,344 head being reported. This is 75% of the 52-week average. Cash prices were $51.73, up $4.67 from a week ago. The low to high range was $38.00 - $58.00. Formula-priced weaners were up $0.47 this week at $42.88.

Cash-traded feeder pig reported volume was below average with 10,850 head reported. Cash feeder pig reported prices were $63.92, up $7.71 per head from last week.

Graph 1 shows the seasonal trends of the cash weaner pig market.

11.27.17 graph 1

Graph 2 shows the cash weaner price and cash feeder price on a weekly basis through November 22, 2017.

11.27.17 graph 2

Graph 3 shows the estimated weaner pig profit by comparing the weaner pig cash price to the weaner breakeven. The profit potential decreased $1.20 this week to a projected gain of $17.33 per head.

11.27.17 graph 3

Editor’s Note: Casey Westphalen is General Manager of NutriQuest Business Solutions, a division of NutriQuest.  NutriQuest Business Solutions is a team of business and financial experts in the livestock, row-crop and financial industries. For more information, go to www.nutriquest.com or email casey@nutriquest.com.

Back to news


Comments

 
Spell Check

No comments have been posted to this News Article

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close