Cattle feeding losses increased last week despite a $1 per hundredweight increase in cash prices. Per head losses now exceed $181 per head on average, according to the Sterling Beef Profit Tracker. Packer margins fell by more than $27 per head, but those margins remain above $50 per head. The Sterling Beef Profit Quotient lost 22 points for the week, according to estimates developed by Sterling Marketing, Inc., Vale, Ore.
Pork producer margins slipped $3 per head last week but profits remain above $35 per hog marketed. Negotiated cash hog prices were virtually steady with last week. Cash hog prices remain about $10 per hundredweight higher than a month ago. Pork packer margins declined by more than $14 per head for the week, leaving losses at just under $20 per head, according to the Sterling Pork Profit Tracker.
A year ago cattle feeders sold cash cattle at $114.85 per hundredweight, resulting in profits of $25.21 per head. Last year cash hogs fetched $96.02 per hundredweight, resulting in profits of $21.28 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 July 7:
- Average feedyard margins: -$181.29 per head.
- Average packer margins: $50.78 per head.
- Sterling Profit Quotient: -533.6.
The Sterling Pork Profit Tracker for the week ending July 7:
- Average farrow-to-finish margins: $35.42 per head.
- Average pork packer margins: -$19.94per 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.