This market update is a PorkNetwork weekly column reporting trends in weaner pig prices and swine facility availability.  All information contained in this update is for the week ended May 15, 2015.

Looking at hog sales in November and pricing off the December lean hog contract the weaner breakeven was $39.76, down $3.98 for the week. Feed costs were up $0.22 per head and hog futures were down $0.58. Breakeven prices are based on closing futures prices on May 15, 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

5/15/2015

Weekly Change

Weaner pig breakeven

$39.76

($3.98)

Margin over variable costs

$61.60

($3.98)

Pig purchase month

Jun, 2015

May, 2015

Live hog sale month

Nov, 2015

Nov, 2015

Lean hog futures

$69.95

($0.58)

Lean hog basis/cwt

($2.00)

($1.25)

Weighted average sbm futures

$299.62

($10.74)

Weighted average sbm basis

($4.81)

($0.85)

Weighted average corn futures

$3.78

$0.08

Weighted average corn basis

($0.19)

$0.00

Nursery cost/space/yr

$35.00

$0.00

Finisher cost/space/yr

$40.00

$0.00

Feed costs per head

$73.80

$0.22

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 average this week with 29,708 head being reported which is 100 percent of the 52 week average. Cash prices were $39.28 up $0.40 from a week ago. The low to high range was $35.00 to $43.00. Formula priced weaners were down $0.54 this week at $39.55.

Cash traded feeder pig reported volume was above average with 15,735 head reported. Cash feeder pig reported prices were $63.58 up $2.57 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 May 15.

Graph 3 shows the estimated weaner pig profit by comparing the weaner pig cash price to the weaner breakeven. The estimated profit is $0.48 per head a decrease of $1.80 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.