Last week I wrote about the exciting happenings in swine nutrition research. This week my comments are still about swine nutrition, but now I’m talking about upcoming ingredient price hikes and their impacts on diet formulation.

Soybean harvest has begun in southern Minnesota with a few fields harvested and combines expected to really begin rolling next week. The increasing availability of new crop beans to local processors has meant soybean meal prices have dropped from the $650/t price I wrote about 1 month ago to $362/t this morning in Mankato. As beans begin coming into processors this price is expected to drop further.

Local corn bids are now under $3/bu with bids in the Dakota’s approaching $2 in the coming weeks. I’ve heard of a $2.25/bu bid already.

All of this sounds like pork producers can breathe easy for the coming months as far as feed ingredient pricing and feed cost of gain. That isn’t the case.

If you use synthetic lysine (just about 100% of the US industry does), be prepared for a price shock when you book your next purchase. The majority of the L-lysine in the US comes from suppliers who use HCl (hydrochloric acid) in the manufacture of the product. Apparently the N Dakota fracking boom has resulted in a shortage of this acid and L-lysine producers (and other industrial users of HCL) are being forced to pay very high prices for this ingredient and in many cases being placed on allocation regardless of price. Within the next week it is expected that L-lysine will jump from $0.60/lb to at least $0.80/lb with further price hikes expected. It does appear that the suppliers of HCL will begin increasing supplies by year end so long term pricing and availability of L-lysine appears to be ok.

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