Cattle feeding margins improved last week as total costs declined $40 per head on cattle marketed. Margins gained more than $26 per head for the week, leaving losses at $55 per head, according to the Sterling Beef Profit Tracker.
Beef packers saw their margins improve nearly $9 per head, leaving losses at $58 per head. The Sterling Beef Profit Quotient declined improved 81 points for the week and the industry profitability index is now negative 181.5, according to estimates developed by Sterling Marketing Inc., Vale, Ore.
Pork producer margins ended the week virtually unchanged, with margins at a negative $25.52 per hog marketed, according to the Sterling Pork Profit Tracker. Negotiated cash hog prices declined $1.53 per hundredweight last week to $80.58. Pork packer margins improved $6.55 per head for the week, resulting in losses of $2.15 per head.
A year ago cattle feeders sold cash cattle at $121.15 per hundredweight, resulting in losses of $90.07 per head. Last year cash hogs fetched $82.43 per hundredweight, resulting in profits of $14.29 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 April 20:
- Average feedyard margins: -$55.21 per head.
- Average packer margins: -$58.29 per head.
- Sterling Profit Quotient: -181.5.
The Sterling Pork Profit Tracker for the week ending April 19:
- Average farrow-to-finish margins: -$25.52 per head.
- Average pork packer margins: -$2.15 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, and PorkNetwork.