Swine Feeding Projections – August 20, 2018
Changes week over week:
• Open-market value of weaned pigs was up modestly (+$3.35/head), but feeder pig values fell substantially (-$6.79/head).
• Expected lean hog values jumped significantly for both January/February and November/December marketings (+$5.55 and +$7.17/cwt, respectively).
• Feed costs -$0.05-0.20 per head: corn -$0.05/bushel, SBM +$0.50/ton, DDGS +$4.75/ton, lysine +$0.04/cwt, and fat -$0.04/cwt.
• Open-market weaned pig profitability continued its upward climb (+$8-9/head), but remain in the red with losses on either side of $4/head.
• Feeder pig profitability took a drastic step forward and into the black (+$22-23/head) with profits of just over $7 per head now expected.
• With recent swings in ingredient prices and seasonally low lean hog values, there is limited economic incentive to feed high nutrient density diets beyond this summer. Producer/system dependent factors outside these example scenarios need to be considered in this regard.