Cattle feeding margins posted a $42 per head gain last week on cash sales at $120 per hundredweight. Per head losses, however, remain in excess of $150 per head, according to the Sterling Beef Profit Tracker.
Beef packers saw their margins improve more than $15 per head on the week to approach total profits of nearly $25 per head. The Sterling Beef Profit Quotient gained 131 points for the week and the industry profitability index is now negative 467, according to estimates developed by Sterling Marketing, Inc., Vale, Ore.
Pork producer margins declined $10 cents per head last week, yet profits remain more than $4 per hog marketed. Negotiated cash hog prices declined $4.73 per hundredweight last week. Pork packer margins improved $2.42 per head for the week, pushing margins to more than $7 per head, according to the Sterling Pork Profit Tracker.
A year ago cattle feeders sold cash cattle at $112.53 per hundredweight, resulting in losses of $57.27 per head. Last year cash hogs fetched $96.38 per hundredweight, resulting in profits of $20.21per 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 August 25:
- Average feedyard margins: -$156.97 per head.
- Average packer margins: $24.26 per head.
- Sterling Profit Quotient: -467.
The Sterling Pork Profit Tracker for the week ending August 25:
Average farrow-to-finish margins: $4.48 per head.
- Average pork packer margins: $7.36 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.