Form-A-Feed provides monthly swine feeding projections to keep you in tune with the ever-changing market conditions and how these changes come together to affect profitability. We have developed a profit analysis program called Results Driven Solutions (RDS) to assess customer profitability given a set of costs, production parameters, and market prices. We have used this on a customer specific basis to improve decision making in purchasing open market pigs as well as for determining the correct feeding program and marketing strategy. Listed below is a more broad analysis of current conditions in today's marketplace. Please contact your Form-A-Feed Representative for profit analysis specific to your operation.
Changes over the past week:
- Both open-market purchase prices were mixed (-$3.33 and +$0.27 for weaned and feeder pigs, respectively).
- Predicted lean hog values were mostly weaker as November/December marketings only fell slightly (-$0.07/cwt) while September/October marketings suffered a more substantial blow (-$0.75/cwt).
- Feed costs were up modestly (+$0.50-0.60/head): corn +$0.01/bushel, SBM +$10.00/ton, DDGS +$3.00/ton, Lysine -$1.25/cwt, and fat +$0.38/cwt.
- Weaned pig profit outlook improved significantly (+$2.50/head), and broke into the black. The outlook for purchased feeder pigs is still brighter despite a slip this week (-$2.50/head).