This Market Update is a weekly column from PorkBusiness.com reporting trends in piglets. All information contained in this update is for the week ending August 23rd.

NutriQuest Business Solutions publishes weekly piglet profitability calculations that use industry typical production costs and futures prices for lean hogs, corn and soybean meal using historical base assumptions to determine the approximate profitability and breakeven point for the current sale or purchase of piglets. Prices are based on closing futures prices on August 23 and assume the costs and historical base assumptions of the CME Lean Hog ​​Index.

Considering that weaners purchased today would be sold in February 2025 using April 2025 futures, weaner breakeven was $29.92, up $0.10 for the week. Feed costs increased $1.29 per animal, and April futures increased $7.55 from last week’s futures, while the historical basis decreased $6.88 per hundredweight from last week.

The “weaner breakeven” is a total breakeven taking into account the fixed costs (e.g. housing and labor) that the buyer would incur. However, many buyers of weaners have empty premises and therefore must bear these fixed costs regardless of whether the buildings are filled with weaners. For producers with empty premises, the maximum price a buyer could pay for a weaner and breakeven is the “margin over variable costs,” which is $55.54.

Please note that weaner profitability calculations provide weekly insights into the relative value of pigs and are based on assumptions that may not reflect your individual situation.

From the National Direct Delivered Feeder Pig Report

Cash piglet volumes were above average this week, with 86,683 animals reported, 121% of the 52-week average. Cash prices were $29.52, up $1.83 from a week ago. The low-to-high range was $22-$35. Prescription piglet prices rose $2.19 this week to $39.61.

The volume of porkers traded was below average at 8,250 head. Prices for porkers traded were $50.87, up $3.21 from last week.

Figure 1 shows the seasonal trends in the weaned piglet market.

Graph 2 shows the cash price for weaners and the cash price for fatteners on a weekly basis until 23 August.

Chart 3 shows the estimated profit from piglet production by comparing the cash price of piglets to the break-even price of piglets. The profit potential decreased by $1.73 this week to a projected profit of $0.40 per animal.

Jennifer Brown is the Director of NutriQuest Business Solutions, a division of NutriQuest. NutriQuest Business Solutions is a team of leading business and financial professionals who bring years of unparalleled experience in the livestock, row crop and finance industries. At NutriQuest, our success is built on helping producers achieve improved profitability and sustainability through innovation driven by a relentless focus on producer success. For more information, visit our website at www.nutriquest.com or email [email protected].