Genesus Global Market Report
USA, January 2021
USA Sales, Genesus Genetics
Today, January 14th, 2021, we are starting the second day of the South Dakota Pork Show and the common conversation is feed cost.
Monday’s up move in corn and soybean meal added $4.00/ head to the cost of raising hogs – in one day! We have added about $10/cwt to summer lean hog futures, which is about $25 per head. Good but not near enough to cover the increased feed cost to get these hogs to market.
Will futures cross $100? My opinion is yes. PRRS causes issues with production every year. This year though seems worse. Those production holes will show up. So far packers have really not had to push to get their kills full. That will change. In part because of demand and in part because of PRRS disruptions in production.
Until then feeding these pigs correctly will be high on the list. Understanding that high intake genetics do not require high priced diets. Talk to your nutritionist as they understand this concept. I personally have worked with them. All of them have our feed specifications and need to be following them as it will cut feed cost to the tune of about $18/ head.
In the meantime, I see no reason to hedge these hog futures. Watch them close though when we get closer to $100 then selling those futures need to be looked at.