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 two weeks:
- Both open-market purchase prices were modestly stronger (+$0.75 and $1.52 for weaned and feeder pigs, respectively).
- Predicted lean hog values were down slightly for December-January marketings (-$0.16/cwt) and much weaker for October-November marketings (-$2.17/cwt).
- Despite large movements in ingredient costs, feed costs were virtually unchanged: corn -$0.08/bushel, SBM +$11.00/ton, DDGS +$4.50/ton, Lysine -$1.58/cwt, and fat -$0.58/cwt.
- Weaned pig profit outlook fell slightly (-$1/head), but remains in the black. Expected feeder pig profitability took a large step deeper into the red (-$6/head).