Greg Henderson, Editor, Associate Publisher, Drovers CattleNetwork   |   Updated: June 11, 2012

Packers paid $1 per hundredweight more for cattle last week, and their margins slipped $15 per head as a result. Their margins, however, remained solidly profitable at more than $22 per head, according to the Sterling Beef Profit Tracker.

Cattle feeding margins improved with the higher cash prices, but losses remained substantial at more than $66 per head. The Sterling Beef Profit Quotient improved 18 points for the week, according to estimates developed by Sterling Marketing, Inc., Vale, Ore.

Pork producer margins more than doubled last week as cash prices jumped more than $6 per head, providing profits of nearly $20 per head. Pork packer margins declined nearly $7 per head for the week, with losses nearing $16 per head, according to the Sterling Pork Profit Tracker.

Cash fed cattle traded at $122 per hundredweight last week, up $1.08, while Western Corn Belt negotiated hog prices were $6.22 from the previous week at $91.36 per hundredweight.

A year ago cattle feeders sold cash cattle at $104.94 per hundredweight, resulting in losses of $62.62 per head. Last year cash hogs fetched $90.24 per hundredweight resulting in profits of $13.95 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 June 9:

• Average feedyard margins: -$66.64 per head.
• Average packer margins: $22.72 per head.
• Sterling Profit Quotient: -195.1.

The Sterling Pork Profit Tracker for the week ending June 9:

• Average farrow-to-finish margins:  $19.76 per head.
• Average pork packer margins: -$15.79 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.