USA: How do corn and soybean prices affect pig feed costs?

Feed is one of the major costs in pig production. In turn, feed costs are sensitive to changes in corn and soybean meal prices. Researchers at Purdue University have performed a regression analysis to examine the relationship between the cost of feed for finishing pigs and corn and soybean meal prices over the period from January 2007 to December 2023. The results show, for example, that a €3.66/t increase in the price of corn raises feed costs by €0.86 per 100 kg, while an €8.50/t increase in soybean meal increases costs by €0.72/100 kg. These relationships highlight how sensitive pig production costs are to fluctuations in grain prices. Current corn and soybean meal prices are below the long-term average, according to data from the US Department of Agriculture. Futures prices suggest that corn and soybean meal prices are likely to remain below their long-term averages well into next year. Thanks to lower corn and soybean meal prices, the average cost of feeding pigs in the US ...