In a dismal post-holiday marketing week cattle feeding losses increased another $60 per head, with the total hickey for each animal now approaching $250. Packer margins remained in the black, but profits declined by more than $38 per head, according to the Sterling Beef Profit Tracker. The Sterling Beef Profit Quotient lost another 196 points on the week, leaving the industry profitability index at a negative 729.6, according to estimates developed by Sterling Marketing, Inc., Vale, Ore.
Pork producer margins slipped nearly $8 per head last week, but profits remain above $27 per hog marketed. Negotiated cash hog prices declined $4.65 per hundredweight last week. Cash hog prices remained about steady with a month ago. Pork packer margins improved by more than $5 per head for the week, leaving losses at just under $15 per head, according to the Sterling Pork Profit Tracker.
A year ago cattle feeders sold cash cattle at $110.85 per hundredweight, resulting in losses of $44.35 per head. Last year cash hogs fetched $93.78 per hundredweight, resulting in profits of $20.58 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 July 14:
- Average feedyard margins: -$243.06 per head.
- Average packer margins: $13.10 per head.
- Sterling Profit Quotient: -729.6.
The Sterling Pork Profit Tracker for the week ending July 14:
- Average farrow-to-finish margins: $27.68 per head.
- Average pork packer margins: -$14.46 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.