According to Iowa State University calculations, the cost of production for hogs marketed in May was $46.84 per hundredweight (live) or $62.46 per hundredweight (carcass). This was the highest monthly cost in the Iowa series since August 2015.
Our admonitions from last month stand: Know your costs. Study your balance sheet to determine just how much risk you can stand. Examine your head to do the same.
The typical Iowa farrow-to-finish operation lost $22.17 per head marketed during April by ISU calculations. April net returns were the worst since November 2016.
Hog slaughter is running at bit lower than the level indicated by the heavy weight inventory in the March pig report (up 3.40% versus up 3.76%).
Hogs & Pigs report neutral to hog market while China’s tariff announcement pressures hog prices.
Here are the Hogs & Pigs numbers and the market analysts’ reaction to the report.