Corn prices will boost 2007 pork production costs
Pork prices could go up in 2007 due to higher corn prices. A researcher at the University of Missouri estimated the cost of producing pigs could increase by $1.75 to $2 per hundredweight.
The prediction was made by Glenn Grimes, University of Missouri. The per-bushel corn price for the 2006/2007 market year is estimated at $2.35, up about $0.36 per bushel from the 2005/2006 market year.
However, if most of this summer’s live-pig demand lasts, the average-cost pork producer will likely be profitable for the next 12 months. Higher corn prices will likely reduce feeder pig prices by $3 to $4 per head, says Grimes.
What appears to be a large soybean supply will keep meal prices in line. The soybean-meal price estimate for the 2006-2007 market year is $162.50 per tonne – down about $10 per tonne from the 2005-2006 market year.
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