Packers continued to hold the market leverage last week and their profits climbed another $17 per head as a result. Cattle feeders found cash bids unchanged from the previous week at $116 and per head losses now exceed $176 per head, according to the Sterling Beef Profit Tracker. The Sterling Beef Profit Quotient lost 103 points for the week, according to estimates developed by Sterling Marketing, Inc., Vale, Ore.
Pork producer margins slipped $5 per head last week but profits remain above $38 per hog marketed. Negotiated cash hog prices fell $2.19 per hundredweight for the week. Cash hog prices remain $10 per hundredweight higher than just three weeks ago. Pork packer margins improved by more than $6 per head for the week, leaving losses at just under $6 per head, according to the Sterling Pork Profit Tracker.
A year ago cattle feeders sold cash cattle at $112.41 per hundredweight, resulting in losses of $13.60 per head. Last year cash hogs fetched $100.78 per hundredweight, resulting in profits of $34.85 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 1:
- Average feedyard margins: -$176.22 per head.
- Average packer margins: $78.43 per head.
- Sterling Profit Quotient: -511.2.
The Sterling Pork Profit Tracker for the week ending July 1:
- Average farrow-to-finish margins: $38.67 per head.
- Average pork packer margins: -$5.81per 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.