Feeder Pig Prices Fall, Total Costs for Wean-To-Finish Operations Rise
By Jennifer Shike, FarmJournal's Pork
June 21, 2022
Feeder pig prices have started to move seasonally lower during the summer months, says the Daily Livestock Report. Meanwhile, higher total costs are expected to remain a headwind for producers’ profitability in the near term.
A Look at the Numbers
Early weaned pig prices (10- 12 lbs.) spiked in February to $83.29 per head, the highest reported for the series going back to 2012. Since the peak, prices have dropped 50% or $41.64 per head to $41.65 last week.
“Compared to last year, last week’s early weaned pig price was 6% lower but compared to the five-year average the price was 38% higher. Typically, early weaned prices will bottom in July or August which means prices could still move lower before starting the seasonal move higher going into the second half of the year,” says the Daily Livestock Report.
A similar seasonal pattern is taking place in 40-pound feeder pig prices. During the last week of February, the 40-pound feeder pig price jumped to $122.28 per head which was the highest price since April and May of 2014 when prices ranged from about $126 to $139 per head for eight weeks.
“Since the peak price earlier this year, prices have fallen 44.7% or $54.61 per head. Year-to-date, last week’s price of $67.67 per head was the lowest reported which was 4.2% below the same week last year but compared to the five-year average the price was 41% higher. Seasonally, prices are expected to continue moving lower as they typically bottom in August,” says the Daily Livestock Report.
Estimated Returns for Wean-to-Finish Operations ...
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