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Uncertainty surrounds swine feed costs

Swine feed prices are subject to uncertainty in 2020. Michael Langemeier with Purdue University’s Center for Commercial Agriculture says there are a lot of unknowns right now. For example, what will the 12 Million acres of prevent plant last year be planted to and what will corn and soybean exports look like?

He tells Brownfield Ag News the median forecast for cash corn prices is around $3.60 but there’s a possibility it could go higher, “Even with the uncertainty we’re facing right now, we’re not looking at corn going to $5.00, necessarily, but we are looking at a chance of corn going to $4.25.”

Langemeier looked at data going back to 2007 which shows a small change up or down can have a big impact on feed prices, “Each 10 cent increase in corn prices, increase feed costs by 44 cents. Also, a $10 increase in soybean meal prices increases feed costs by 32 cents per hundredweight.”

He says pork producers need to be prepared, “If corn price did go up, what’s your Plan B?”

Langemeier says USDA’s March planting intentions survey could help relieve some price uncertainty.