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If the arithmetic is correct...
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1586
Posted 7/1/2015 08:57 (#4655785 - in reply to #4655744)
Subject: RE: Yes and wasn't there a few stateing


Kooiker - 7/1/2015 07:33

1586 - 7/1/2015 08:18  Could happen? I don't know the economics of hogs. The few I do are contract. Here is a chart that just showed up this am. Do know that there is 5.25 Bil Bu penciled in for feed use and this may see a slight bump. Cheep corn you feed it. $4 doesn't change much.





The economics of feeding hogs is about break even right now.


The fall/winter months on the board with current feed costs are showing losses of $15-20/hd.


Rough figuring a hog needs 10 bushels of corn.    

A dime move in the corn market is $1/hd.     A dollar move in the corn market is $10/hd. 
 


 



Most large operations should be hedged thru the first of the year on feed. If not they were staring a gift horse in the mouth. I sure would have been locking in feed the past few weeks with what was going on. Kind of like a normal year with a good rain on the first of July and corn is still $7 and you are waiting for $8.
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