Swine Feeding Projections – July 23, 2018
Changes week over week:
- Open-market value of weaned and feeder pigs increased modestly (+$0.22 and +$2.44/head, respectively).
- Continued downward pressure on lean hog values further depressed expected prices for both December/January and October/November marketings (-$4.57 and -$3.40/cwt, respectively).
- Feed costs -$0.10 per head: corn +$0.15/bushel, SBM -$2.75/ton, DDGS -$6.00/ton, lysine -$1.79/cwt, and fat -$0.75/cwt.
- Open-market weaned pig profitability took a major hit (-$10.00/head) with losses in the $17-18 range.
- Feeder pig profitability took another major step backward (-$9.00/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.