Robust demand supporting feeder prices earlier in the year but prices should be seasonally lower into the spring.
Feeder pig prices have performed better than some expected at the start of the year but it appears that seasonality has finally started to catch up with this market, especially as we start to move past demand for summer needs. Each week USDA reports on the number of feeder pigs that are traded and the average price, both on a formula and cash basis.
Prices are reported for two categories of feeder pigs, early wean pigs that weight 10-12 pounds and feeder pigs that weight around 40 pounds. Most feeder pigs traded are early wean 10-12lb. basis. For the week ending February 28, USDA reported the average price of early wean 10-12lb feeder pigs at $44.51/ head on a formula basis and $60.34/head on a cash basis. The premium of formula vs. cash may appear quite dramatic but it is not that unusual, there is a strong seasonal in the premium as well.