Cash Feeder Pig Prices Average $61.37, Up $4.18 Last Week

Nov 18, 2022

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 Nov. 18.

NutriQuest Business Solutions publishes weekly weaner pig profitability calculations which uses industry representative production costs and futures pricing for lean hogs, corn, and soybean meal, using historical basis assumptions, to establish approximate profitability and break-even pricing for the current sale or purchase of weaner pigs. Prices are based on closing futures prices on Nov. 18 and assumes CME Lean Hog Index cost and historical basis assumptions.

When you consider that today’s purchased weaner would be sold in May 2023 using June 2023 futures, the weaner breakeven was $77.32, up $10.70 for the week. Feed costs were up $3.45 per head, and June futures increased $7.70 compared to last week’s May futures, while historical basis is declined from last week by $0.96 per cwt.

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Video: Wheat Futures Head for the Moon on Escalating Drought Concerns

???? Wheat surges on drought: Prices jumped to multi-week highs as worsening dryness grips the Plains, with 70% of winter wheat in drought. Corn edged higher, while soybeans slipped.

??????? Mixed weather pattern: Rain improved parts of the Corn Belt, but drought worsened elsewhere—especially the High Plains and Kentucky. Nebraska conditions sharply deteriorated, with 56% in extreme drought.

????? Oil spikes on tensions: Crude climbed over 3% near $96 as Iran keeps the Strait of Hormuz restricted, while fragile ceasefires keep geopolitical risk elevated. ???? Pulses gain favor: Farmers are shifting to peas and lentils as a rare profit opportunity, driven by strong protein demand and lower input costs.

???? Exports mixed but solid: Corn sales dipped week-over-week but remain strong overall; soybean and wheat sales showed mixed trends, with steady global demand.