Feeder margins over $100 higher than a month earlier

 Resize text         Printer-friendly version of this article Printer-friendly version of this article

Market levels Cash trade plays a major role in feeder and packer profit margins this week as a $2 increase above the previous week pushes profit margins in opposite directions.

Feeder profit margins averaged $76.48 last week, increasing $33.60 per head compared to the previous week according to the Sterling Beef Profit Tracker. Feeder margins are drastically higher than a month earlier when the average was negative $57.96 per head and are even better than the negative $83.47 average this time last year.

Cash prices improving by over two dollars, selling at $126 per hundredweight and slightly lower feed costs, down 60 cents per head contributed to higher feeder margins.

Packer margins fell lower, down $11.72 to average negative $35.35 according to estimates by Sterling Marketing, Inc., Vale, Ore. Packer margins were $18.27 per head a month earlier and negative $54.58 a year ago. Packer losses were eased by beef cutout prices inching 79 cents higher.

Pork producer margins retreated last week, but remain positive as negotiated cash hog prices lost $2.60 per hundredweight.

Producer margins last week averaged $4.57 per head according to the Sterling Pork Profit Tracker. Last week’s margins were below the $13.51 average a week earlier and $5.96 average a month ago. Last week’s margins did remain positive and are $19.66 above the negative $15.09 recorded a year ago.

Lower feed costs moved the calculated breakeven price $5.13 per head lower than a week earlier.

Pork packer margins remain negative and lost an additional $1.40 per head last week, moving to negative $4.45 per head.

The Sterling Beef Profit Tracker for the week ending September 28:

  • Average feedyard margins: $76.48 per head.
  • Average packer margins: -$35.35 per head.

The Sterling Pork Profit Tracker for the week ending September 27:

  • Average farrow-to-finish margins: $4.57 per head.
  • Average pork packer margins: -$4.45 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.



Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left


FourTrax(R) Foreman 4x4

Honda’s line of all-terrain vehicles has always been the machinery farmers and ranchers counted on for strong, rugged, reliable performance. ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Leads to Insight