Losses increase for cattle feeders and packers

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Cattle feeding margins declined $7 per head last week following a $1 per hundredweight decrease in cash fed cattle prices. Average losses are now more than $81 per head, according to the Sterling Beef Profit Tracker.

Beef packers saw their margins decline nearly $22 per head, leaving losses at $67 per head. The Sterling Beef Profit Quotient declined 26 points for the week and the industry profitability index is now negative 262.5, according to estimates developed by Sterling Marketing Inc., Vale, Ore.

Pork producer margins improved modestly, with margins at a negative $26 per hog marketed, according to the Sterling Pork Profit Tracker. Negotiated cash hog prices improved $1.66 per hundredweight last week to $82.11. Pork packer margins declined $0.72 per head for the week, resulting in losses of $8.70 per head.

A year ago cattle feeders sold cash cattle at $121.47 per hundredweight, resulting in losses of $78.62 per head. Last year cash hogs fetched $82.17 per hundredweight, resulting in profits of $10.85 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 13:

  • Average feedyard margins: -$81.35 per head.
  • Average packer margins: -$66.79 per head.
  • Sterling Profit Quotient: -262.5.

The Sterling Pork Profit Tracker for the week ending April 12:

  • Average farrow-to-finish margins: -$25.74 per head.
  • Average pork packer margins: -$8.70 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.



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Cyn    
April, 17, 2013 at 12:05 PM

Keep in mind that with the horse slaughter issues in US and the horse meat scandal in Europe, that there's a chance the American beef market will suffer, in a city council meeting they ACTUALLY brought up meat safety and what to watch for and where citizens can get the meat supply secured from local butchers we can be sure to trust. So watch out, as we get deeper involved in the horse slaughter issue with the cattle industry pushing for all of it to go through, you will see prices drop-and don't forget, there are plenty of food choices now that are popping up everywhere, many people through the summer are already trending to purchase goats, chickens, sheep, and their own calves. City people are finding renewed interest in fish, vegetables, fruits, poultry, quail, turkey (which in last 2 months has been popular in our school system, they have not served red meat since the scandal in Europe broke out!) lamb, and exotic meats! We are also seeing an increase in people making their own pet foods, plus we have already been warned of beef inspection issues so people are starting to pre-plan ahead without beef in their diet. It may just go back to being the meat people only choose to grill on sat/sun! U never know, I mean really there are so many other meats available, and local cattle purchased and butchered will take away from the beef market as well. I noticed UK stated they had a 27 percent drop in beef sales. And where France used to have 30 butcher shops for horse they are closing left and right-so it may just be possible that people are NOT really wanting as much red meat as you think anymore. I raise cattle AND eat red meat. But I know what I am eating when I get a butchered cow, other people DO NOT! So don't be shocked

Cyn    
April, 17, 2013 at 12:05 PM

Keep in mind that with the horse slaughter issues in US and the horse meat scandal in Europe, that there's a chance the American beef market will suffer, in a city council meeting they ACTUALLY brought up meat safety and what to watch for and where citizens can get the meat supply secured from local butchers we can be sure to trust. So watch out, as we get deeper involved in the horse slaughter issue with the cattle industry pushing for all of it to go through, you will see prices drop-and don't forget, there are plenty of food choices now that are popping up everywhere, many people through the summer are already trending to purchase goats, chickens, sheep, and their own calves. City people are finding renewed interest in fish, vegetables, fruits, poultry, quail, turkey (which in last 2 months has been popular in our school system, they have not served red meat since the scandal in Europe broke out!) lamb, and exotic meats! We are also seeing an increase in people making their own pet foods, plus we have already been warned of beef inspection issues so people are starting to pre-plan ahead without beef in their diet. It may just go back to being the meat people only choose to grill on sat/sun! U never know, I mean really there are so many other meats available, and local cattle purchased and butchered will take away from the beef market as well. I noticed UK stated they had a 27 percent drop in beef sales. And where France used to have 30 butcher shops for horse they are closing left and right-so it may just be possible that people are NOT really wanting as much red meat as you think anymore. I raise cattle AND eat red meat. But I know what I am eating when I get a butchered cow, other people DO NOT! So don't be shocked


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