Commentary: Wean pig and swine facility insights

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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 April 12, 2013.

Breakeven price for a weaner pig was $33.65 based on closing futures prices on April 12, 2013 and the assumptions outlined below.  This is down $3.87 from last week.

Margin over variable costs was $56.45 and refers to the revenue generated from raising a weaner pig that contribute to fixed costs and pig purchase costs. In other words, if the alternative is to idle facilities, every dollar between the purchase price and margin over variable costs contributes to covering those fixed costs such as facility, labor, utilities, property taxes and insurance.

Weaner Pig Breakeven

$33.65

 

Margin over Variable Costs

$56.45

 

Pig Purchase Month

April, 2013

 

Live Hog Sale Month

October, 2013

 

Average north central IA SBM Basis

$0.00

 

Average north central IA Corn Basis

$0.11

 

Nursery cost/space/yr

$36.00

 

Finisher cost/space/yr

$42.00

 

Other Feed & Drug cost

$26.00

 

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

Cash traded weaner pig volume was slightly higher this week with 27,106 head trading. That is 66 percent of the four-week running average. Reported cash prices were basically unchanged, up only $0.07 per head from a week ago at $28.52 and the low to high range was unchanged.

Cash Sale Weaner Pig Volume

27,106

 

Weighted Average Cash Price/head

$28.52

 

Cash Low Price/head

$21.00

 

Cash High Price/head

$32.00

 

The number of weaner pigs sold on a formula basis was up 41 percent, with 54,185 head being reported at an average price of $38.28.

Facility Spaces

As listed on ePigflow, there were 38,495 finishing spaces available and 18,300 nursery spaces available. That is up 19 percent on a combined basis.

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.



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