Multi Year Highs on Porcine MBM

Multi Year Highs on Porcine MBM

Porcine MBM closed the month up just shy of $33 from January. Prices have hit the highest February market since 2014 and the highest monthly average since August of 2015. The PED virus decimated the hog numbers in late 2013 through 2015, which contributed to the big numbers and relative prices to soybean meal as high as 150 percent. The current market has been driven by tighter supplies of proteins, but not to the PEDv days of 2014 and 2015. Porcine MBM remains well priced versus soybean meal and the expectation for slower slaughter in March adds risk for continued high prices.

Figure 1.

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