This market update is a PorkBusiness.com weekly column reporting trends in weaner pigs. All information contained in this update is for the week ended March 22.
NutriQuest Business Solutions publishes weekly weaner pig profitability calculations which uses industry representative production costs and futures pricing for lean hogs, corn and soybean meal, using historical basis assumptions, to establish approximate profitability and break-even pricing for the current sale or purchase of weaner pigs. Prices are based on closing futures prices on March 29, and assumes CME Lean Hog Index cost and historical basis assumptions.
When you consider that today’s purchased weaner would be sold in September 2024 using October 2024 futures, the weaner breakeven was $65.47, up $2.68 for the week. Feed costs were up $0.21 per head, and October futures increased $1.38 compared to last week’s futures, while historical basis is unchanged.
The “weaner pig breakeven” is an all-in break-even considering fixed costs (e.g., housing and labor) that would be incurred by the buyer. However, many buyers of weaners have empty space and therefore will incur these fixed costs whether the buildings are stocked with weaners. For those producers with empty space, the maximum price a buyer could pay for a weaner pig and breakeven is the “margin over variable costs,” which is $91.09.
From the National Direct Delivered Feeder Pig Report
Cash-traded weaner pig volume was above average this week with 71,525 head being reported which is 108% of the 52-week average. Cash prices were $48.41, down $1.39 from a week ago. The low to high range was $37.50 to $63. Formula-priced weaners were down $1.30 this week at $52.91.
Cash-traded feeder pig reported volume was above average with 19,415 head reported. Cash feeder pig reported prices were $98.14, up $3.93 per head from last week.
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