Optimism is returning to the hog market. For the week ending Sept. 28, the average spot market price as quoted by USDA for weaned pigs was $15.14 per pig delivered. This week’s average price was $43.76 per pig delivered. In 5 weeks the spot market value of weaned pigs increased $28.62 per pig. The lowest reported price paid per pig went from $9 per pig to $27 per pig.
Forty (40) pound feed pig spot prices increased from $20.20 per pig to $42.93 per pig for the same period.
All of this suggests that producers have lost the urge to sell sows. The spot market price is high enough now that sale of weaned pigs will generate enough income to cover most if not all of a units cash costs and in most instances even fixed costs. The spot feeder pig price isn’t high enough to cover all costs yet, but the $22.73 per head increase in price sure makes a difference in outlook for those producing pigs for this market.