Corn Price Surge Set to Boost Swine Finishing Feed Costs by Over 10%
Corn prices have been rising steadily over the past year, with the nearby contract price reaching $5.18 per bushel in early August. This increase in corn prices will likely translate to higher feed costs for swine finishing operations later this year and into 2027.
A study by farmdoc daily examined the impact of higher corn prices on swine finishing feed costs, using data from January 2007 to July 2026. The analysis found that average feed costs in 2027 are expected to be around 10% higher than those experienced in 2026.
The study also looked at the sensitivity of feed costs to changes in corn prices. Using a price distribution tool, the researchers found that there is a 25% chance that the corn futures price will be below $4.97 per bushel or above $5.70 per bushel by December 2026. The median expected corn futures price was $5.50 per bushel.
The analysis revealed that each $0.10 per bushel increase in corn prices increases feed cost per cwt. by $0.43, and each $10 per ton increase in soybean meal prices increases feed cost per cwt. by $0.37. This means that even small changes in corn and soybean meal prices can have a significant impact on swine finishing feed costs.