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 26, 2013.

Breakeven price for a weaner pig was $33.99 based on closing futures prices on April 26, 2013 and the assumptions outlined below.  This is down $1.39 from last week.

Margin over variable costs was $56.79 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 toward covering those fixed costs such as facility, labor, utilities, property taxes and insurance.

Weaner Pig Breakeven

$33.99

Margin over Variable Costs

$56.79

Pig Purchase Month

May, 2013

Live Hog Sale Month

November, 2013

Average north central IA SBM Basis

$22.50

Average north central IA Corn Basis

$0.41

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 reported volume was 11 percent lower this week with 32,656 head trading. Reported cash prices were basically unchanged, up $0.14 per head from a week ago at $28.60 and the low to high spread was narrower at $8.50.

Cash Sale Weaner Pig Volume

32,656

 

Weighted Average Cash Price/head

$28.60

 

Cash Low Price/head

$23.50

 

Cash High Price/head

$32.00

 

The number of reported weaner pigs sold on a formula basis was down 12 percent with 38,149 head being reported at an average price of $37.61 which is down $0.32 per head from the previous week.

Facility Spaces

As listed on ePigflow, there were 34,100 finishing spaces available and 14,900 nursery spaces available. For total available space of 49,000 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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