Packer margins continue improving as feeder margins dip

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Feeder margins dipped slightly while packer margins continued improving according to the Sterling Beef Profit Tracker.

After a nearly $36 jump two weeks ago to $124.67, feeder margins dropped back to $122.93 for the week ending November 2, 2013. Feeder margins are $82.28 per head better than a month earlier and $155.61 higher than the negative $32.68 from one year ago. Feed costs continue to track downward, at $8.27 lower compared to a week earlier and $172.93 lower than last year at this time. Total cost is down $15.52 compared to last week.

Packer margins remain in the red but continue improving as they closed the day on November 2 at $11.99 per head better than a week earlier moving from negative $50.06 to negative $38.07 per head, Sterling Marketing, Inc., reports. Packer losses were$59.69 one month ago and averaged $76.48 at this time last year.

Packers’ price for choice steers increased just $0.04 compared to the previous week to $132.38, and beef cutout values topped $200 last week, finishing the week at $200.33, a $4.63 increase compared to the previous week.

Pork producer margins continued the negative trend started last week and finished the week ending November 1 at negative $10.31. Producer margins are below the $1.96 per head set a month ago and negative $9.37 at this time last year according to the Sterling Pork Profit Tracker. Feed costs and total costs continued a slight downward trend ending the week at $87.95 and $144.43, respectively.

Negotiated cash hog values fell another $1.88 last week to $86.58.

Packer margins fell off from two weeks ago, dropping to $2.01. Pork prices lost an additional $0.73 and finished the week at $93.92.

The Sterling Beef Profit Tracker for the week ending November 2:

  • Average feedyard margins: $122.93 per head.
  • Average packer margins: -$38.07 per head.

The Sterling Pork Profit Tracker for the week ending November 1:                                          

  • Average farrow-to-finish margins: -$10.31 per head.
  • Average pork packer margins: $2.01 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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