Virtually all the leverage belonged to packers last week and their profits more than doubled as a result. Cash fed cattle prices were tamped down $3 per hundredweight while beef cutout values dipped only modestly.
Cash fed cattle sold at $116 per hundredweight for the week and cattle feeding losses remained substantial, according to the Sterling Beef Profit Tracker. The Sterling Beef Profit Quotient gained 43 points for the week, according to estimates developed by Sterling Marketing, Inc., Vale, Ore.
Cattle feeding margins actually saw slight improvement due to lower total average costs for cattle and grain against this week’s marketing.
Pork producer margins continued climbing last week with profits now exceeding $44 per hog marketed. Negotiated cash hog prices jumped $6.37 per hundredweight for the week, boosting profits by more that $14 per head from the previous week. Cash hog prices have jumped nearly $12 per hundredweight the past two weeks.
Pork packer margins actually gained a little ground last week as average losses were pegged at just under $12 per head, according to the Sterling Pork Profit Tracker.
A year ago cattle feeders sold cash cattle at $111.99 per hundredweight, resulting in losses of $49.07 per head. Last year cash hogs fetched $102.61 per hundredweight, resulting in profits of $37.64 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 23:
- Average feedyard margins: -$140.46 per head.
- Average packer margins: $61.33 per head.
- Sterling Profit Quotient: -407.8.
The Sterling Pork Profit Tracker for the week ending June 23:
- Average farrow-to-finish margins: $44.22 per head.
- Average pork packer margins: -$11.88 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.