Cattle feeding margins improve on higher cash sales

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Cattle feeding margins improved $46 per head last week after cash fed cattle prices jumped $3 per hundredweight, leaving average losses at $95 per head, according to the Sterling Beef Profit Tracker.

Beef packers saw their margins decline $14 per head, leaving losses at $59 per head. The Sterling Beef Profit Quotient declined 136 points for the week and the industry profitability index is now negative 303.5, according to estimates developed by Sterling Marketing, Inc., Vale, Ore. A month ago the Sterling Beef Profit Quotient was a negative 103.

Pork producer margins improved $6.02 per head last week, with margins now at a negative $6.99 per hog marketed. Negotiated cash hog prices increased $0.28 per hundredweight last week to $88.77. Pork packer margins declined $2.25 per head for the week, creating losses of $6.67 per head, according to the Sterling Pork Profit Tracker.

A year ago cattle feeders sold cash cattle at $122.63 per hundredweight, resulting in losses of $68.18 per head. Last year cash hogs fetched $86.73 per hundredweight, resulting in profits of $16.28 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 Feb. 2:

  • Average feedyard margins: -$95.61 per head.
  • Average packer margins: -$59.06 per head.
  • Sterling Profit Quotient: -303.5.

The Sterling Pork Profit Tracker for the week ending Feb. 1:

  • Average farrow-to-finish margins: -$6.99 per head.
  • Average pork packer margins: -$6.67 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.



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Felix    
Germany  |  February, 06, 2013 at 02:03 PM

Hello, where can i find something about the calculation of your beef profit quotient? Kind regards!


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