Cooney: Lower feed costs boost weaner pig breakeven price

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

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 Nov. 1, 2013.

The weaner pig breakeven price is $81.91, up $7.68 for the week. The increase is the result of a higher hog prices and lower corn and soybean meal costs. The breakeven price is based on closing futures prices on November 1, 2013 and the assumptions outlined below.

Margin over variable costs was $103.74 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.

For the Week Ended

11/1/2013

Weekly Change

Weaner pig breakeven

$81.91

$7.68

Margin over variable costs

$103.74

$7.68

Pig purchase month

Nov, 2013

Nov, 2013

Live hog sale month

Apr, 2014

Apr, 2014

Lean hog futures

98.60

$1.05

Lean hog basis/cwt

($3.92)

$1.34

Weighted average sbm futures

$388.62

($26.08)

Weighted average sbm basis

$0.31

$0.27

Weighted average corn futures

$4.39

($0.14)

Weighted average corn basis

($0.13)

$0.01

Nursery cost/space/yr

$35.00

$0.00

Finisher cost/space/yr

$40.00

$0.00

Other feed cost

$21.50

$0.00

Assumed carcass weight

205

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 below average with just 13,950 head reported, down 55 percent from the previous week. Cash prices were $59.72 per head, up $3.72 from the previous week. 

 

Reported

Weekly change

Cash sale weaner pig volume

13,950

(17,361)

Weighted average cash price/head

$59.72

$3.72

Cash low price/head

$51.00

$1.00

Cash high price/head

$65.00

$2.00

The number of reported weaner pigs sold on a formula basis was 47,166 head being reported at an average price of $45.75. That’s down $0.43 per head from the previous week.

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


Slick N' Clean Products

ADM Slick N’ Clean Tabs are an environmentally safe, non-toxic, and non-corrosive additive for lagoons and manure pits. It offers ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Generate Leads