Commentary: Wean pig and swine facility insights

 Resize text         Printer-friendly version of this article Printer-friendly version of this article

Weaned hogs This market update is a new PorkNetwork weekly column reporting trends in weaner pig prices and swine facility availability. All information contained in this update is for the week ended March 29, 2013.

Breakeven price for a weaner pig was $35.04 based on closing futures prices on March 28, 2013 and the assumptions outlined below. This is up a whopping $6.93 from last week as a result of strength in hog futures after weeks of declines and a bearish USDA grain stocks report. 

Margin over variable costs was $57.84 and refers to the revenue generated from raising a weaner pig that can cover facility and pig purchase costs. In other words, if the alternative is to idle facilities, every dollar between the  purchase price and the margin over variable costs contributes toward covering those fixed facility costs.

Weaner Pig Breakeven

$35.04

Margin over Variable Costs

$57.84

Pig Purchase Month

Apr-13

Hog Sale Month

Oct-13

Average Corn Basis

$0.11

Average SBM Basis

$0.00

Other Variable (Feed/Drug) Costs

$26.43

Nursery Cost/Space/Yr

$36.00

Finisher Cost/Space/Yr

$42.00

Assumed Carcass Weight

205.00

Hog Basis, net of Premiums, Freight

$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.

National Direct Delivered Feeder Pig Report: Week Ending March 29

Cash traded weaner pig volume was strong - up 63 percent compared to a week ago and 143 percent of the four-week running average. Reported cash prices were down $3.27 per head from a week ago and the low to high range was $12.93 per head narrower.

 

Cash

Weaner Pig Volume

70,054

Weighted Average Price/head

$23.80

Cash Low Price/head

$18.00

Cash High Price/head

$30.07

Facility Spaces

As listed on ePigflow, there were 27,995 finishing spaces available and 7,400 nursery spaces available.

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



Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left


MINTREX®

MINTREX - MINTREX® chelated trace minerals are a highly bioavailable source of trace minerals protected by HMTBa, the active ingredient ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Generate Leads