This market update is a PorkBusiness.com weekly column reporting trends in weaner pigs. All information contained in this update is for the week ended Oct. 22.
When you consider today’s purchased weaner would be sold in April 2022, using May 2022 futures, the weaner breakeven was $43.87, down $9.27 for the week. Feed costs were up $1.59 per head, and May futures decreased $3.70 compared to last week, while historical basis is unchanged from last week.
The “weaner pig breakeven” is an all-in break-even considering fixed costs (e.g., housing and labor) that would be incurred by the buyer. However, many buyers of weaners have empty space and therefore will incur these fixed costs whether or not the buildings are stocked with weaners. For those producers with empty space, the maximum price a buyer could pay for a weaner pig and breakeven is the “margin over variable costs,” which is $63.14.
Note the weaner pig profitability calculations provide weekly insight into the relative value of pigs based on assumptions that may not be reflective of your individual situation.
From the National Direct Delivered Feeder Pig Report
Cash-traded weaner pig volume was below average this week with 33,290 head being reported, which is 79% of the 52-week average. Cash prices were $51.95, up $1.77 from a week ago. The low to high range was $35.00 to $60.00. Formula-priced weaners were up 69¢ this week at $48.75.
Cash-traded feeder pig reported volume was above average with 9,150 head. Cash feeder pig reported prices were $70.64, down $0.00 per head from last week.
Graph 1 shows the seasonal trends of the cash weaner pig market.
Graph 2 shows the cash weaner price and cash feeder price on a weekly basis through Oct. 22, 2021.
Graph 3 shows the estimated weaner pig profit by comparing the weaner pig cash price to the weaner breakeven. The profit potential decreased $11.04 this week to a projected loss of $8.08 per head.
