Swine Feeding Projections – July 16, 2018
Changes week over week:
- Open-market value of weaned and feeder pigs fell modestly (-$2.38 and -$1.08/head, respectively).
- Continued downward pressure on lean hog values dropped expected prices for both December/January and October/November marketings (-$4.20 and -$5.93/cwt, respectively).
- Feed costs -$1.75 per head: corn -$0.13/bushel, SBM -$10.00/ton, DDGS -$3.25/ton, lysine unchanged, and fat -$0.21/cwt.
- Open-market weaned pig profitability took a moderate hit (-$4.50-5.00/head) with losses in the $7-8 range.
- Feeder pig profitability took another major step backward (-$10.00-11.00/head) and crashed deeper into the red.
- 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.