Hog Finishing Margin (HFM)

Daily pork producer profitability signal — the margin on taking a feeder pig to market weight using current lean hog, corn, and soybean meal prices.

Updated daily · USDA AMS Reports 2498 + 3511 · NASS corn basis
Sample Signal
Profitable
+$38 / head
After feeder pig, corn, and soybean meal cost. Breakeven ≈ $0.
Lean Hog (National Avg)
$91.25 / cwt
USDA AMS 2498 · Barrows & Gilts
Corn (Cash)
$4.38 / bu
USDA NASS · Iowa weighted avg
Soybean Meal
$298 / ton
USDA AMS Report 3511
Feeder Pig Cost
$55 / head
Fixed assumption (industry standard)

The Formula

Carcass Weight = 270 lb live × 0.74 dress = 199.8 lb
Revenue = 199.8 lb × ($91.25 / 100) = $182
Feeder Pig Fixed = $55
Corn Cost 12 bu × $4.38 = $53
Soy Meal Cost 75 lb ÷ 2,000 × $298/ton = $11
HFM = $182 − $55 − $53 − $11 = +$63 / head

Inputs above are illustrative. Subscribe to GrainBrief Pro for live USDA-sourced inputs updated daily.

Reading the Signal

HFM RangeSignalWhat It Means
+$100 or more Strong Profit Wide margins — producers expand, sow placements increase, corn & meal demand building
+$40 to +$99 Profitable Normal operating environment — stable placements, no urgency to hedge
$0 to +$39 Marginal Breakeven conditions — producers watch closely; any input spike is painful
−$1 to −$79 Stress Losses mounting — contract renegotiations, expansion plans frozen
−$80 or worse Severe Loss Structural losses — herd liquidation possible, sow culling accelerates

Why HFM Matters to Grain and Oilseed Farmers

Corn & Soy Meal Demand Signal

U.S. hogs consume roughly 12 bushels of corn and 75 lbs of soybean meal per animal finished. When HFM goes deeply negative, farrow-to-finish operations slow placements. That demand hit reaches corn and soy markets 4–6 months later. Watch HFM to anticipate basis direction before it moves.

Soybean Crush Relationship

Pork is the primary end market for soybean meal in the U.S. When HFM is severely negative, meal demand weakens — which can widen the soybean crush margin or depress it depending on crush capacity utilization. HFM and soybean crush margins are linked at the hip.

Regional Corn Basis Impact

Iowa produces 30% of U.S. pork. When Iowa pork operations tighten placements due to negative HFM, local corn basis in the state can widen. Grain farmers selling corn into central Iowa should track HFM as a leading basis indicator.

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Page reviewed: 2026-06-03 Topic: hog finishing margin Sources: USDA FAS, CFTC, USDA WASDE, EIA, NOAA, FRED, and GrainBrief market-signal interpretation

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