This market update is a PORK Network weekly column reporting trends in weaner pig prices and swine facility availability.  All information contained in this update is for the week ended April 17, 2015.

Looking at hog sales in October and pricing off the October lean hog contract the weaner breakeven was $40.98, down $1.55 for the week as future prices decreased $0.58. Feed costs were up $0.36 per head. Breakeven prices are based on closing futures prices on April 17, 2015. The breakeven price is the estimated maximum you could pay for a weaner pig and breakeven when selling the finished hog.

For the Week Ended

4/17/2015

Weekly Change

Weaner pig breakeven

$40.98

($1.55)

Margin over variable costs

$62.81

($1.55)

Pig purchase month

May, 2015

Apr, 2015

Live hog sale month

Oct, 2015

Oct, 2015

Lean hog futures

$70.67

($0.58)

Lean hog basis/cwt

($0.85)

$0.00

Weighted average sbm futures

$312.91

$3.92

Weighted average sbm basis

($3.96)

$0.00

Weighted average corn futures

$3.95

$0.01

Weighted average corn basis

($0.18)

$0.01

Nursery cost/space/yr

$35.00

$0.00

Finisher cost/space/yr

$40.00

$0.00

Feed costs per head

$76.36

$0.36

Assumed carcass weight

205

0.00

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 don’t take into account 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 above average this week with 39,870 head being reported which is 138 percent of the 52 week average. Cash prices were $34.19 down $0.37 from a week ago. The low to high range was $30.00 to $44.00. Formula priced weaners were up $0.93 this week at $38.86.

Cash traded feeder pig reported volume was below average with 9,090 head reported. Cash feeder pig reported prices were $66.10 up $0.99 per head from last week.

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

Graph 2 shows the cash weaner price and cash feeder price on a weekly basis through April 17.

Graph 3 shows the estimated weaner pig profit by comparing the weaner pig cash price to the weaner breakeven. The estimated profit is $6.79 per head a decrease of $1.18 from last week.

Ryan Cooney is director of market development for NUTRIQUEST and general manager of ePigflow, a free online market for weaner pigs, feeder pigs and facility spaces. You can find available pigs and facilities by visiting www.epigflow.com.