Feedyard margins near break-even, packers continue to slip
Cattle feeding margins improved nearly $62 per head last week, leaving average losses just over $16 per head, the smallest per head loss in more than two months, according to the Sterling Beef Profit Tracker.
Beef packers saw their margins decline $20 per head on the week to slip to a negative $54 per head. The Sterling Beef Profit Quotient gained 181 points for the week and the industry profitability index is now negative 64, according to estimates developed by Sterling Marketing, Inc., Vale, Ore. A month ago the Sterling Beef Profit Quotient was a negative 595.
Pork producer margins declined $7 per head last week, with margins now $36 in the red per hog marketed. Negotiated cash hog prices declined $4 per hundredweight last week. Pork packer margins improved $7.98 per head for the week, pushing margins to nearly $25 per head, according to the Sterling Pork Profit Tracker.
A year ago cattle feeders sold cash cattle at $117.05 per hundredweight, resulting in losses of $67 per head. Last year cash hogs fetched $88.98 per hundredweight, resulting in losses of $11.77 per head.
The Sterling Beef and Pork Profit Trackers are calculated using actual weekly prices for both cattle and hogs, feed costs, beef and pork cutout prices, drop credits and other factors that influence profit margins.
The Sterling Beef Profit Tracker for the week ending Sept. 15:
- Average feedyard margins: -$16.60 per head.
- Average packer margins: -$54.09 per head.
- Sterling Profit Quotient: -64.0.
The Sterling Pork Profit Tracker for the week ending Sept. 17:
Average farrow-to-finish margins: -$36.15 per head.
- Average pork packer margins: $24.78 per head.
The Sterling Beef and Pork Profit Trackers are produced by Sterling Marketing Inc. and John Nalivka, president, Vale, Ore., and are published weekly by Drovers/CattleNetwork.