Feeding losses remain grim, packers still flush

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Cattle feeders suffered through another week of heavy losses. Margins improved $7 per head, but losses remain in excess of $187 per animal, according to the Sterling Beef Profit Tracker.

Packers had what would be called a bad week, except their near $20 per head margin decline left them with profits of $64 per head, according to estimates by Sterling Marketing, Inc., Vale, Ore.

Pork producer margins declined $0.76 per head, with margins now a positive $19.89 per hog marketed, according to the Sterling Pork Profit Tracker. Negotiated cash hog prices declined $0.61per hundredweight last week to $101.03. Pork packer margins declined $6.12 per head for the week, resulting in losses of $2.70 per head.

A year ago cattle feeders sold cash cattle at $114.70 per hundredweight, resulting in losses of $243.06 per head. Last year cash hogs fetched $96.65 per hundredweight, resulting in profits of $27.68 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 13:

  • Average feedyard margins: -$187.36 per head.
  • Average packer margins: $64.17 per head.

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

  • Average farrow-to-finish margins: $19.89 per head.
  • Average pork packer margins: -$2.70 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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Ron Brandt    
Mason, Ohio  |  July, 18, 2013 at 11:48 AM

Once again cattle feeders are showing that they do not understand economics. They should be paying $100/100 weight for their feeder calves and instead have again bid calf prices into the $145 - $160 range. What kind of idiots are you? A cow-calf operator getting $1100 for a feeder calf is making $600 - $740 PROFIT per head and you feeders are losing nearly $200/head. I sincerely hope that every feed lot operator goes broke once and for all.

maxine    
SD  |  July, 18, 2013 at 07:06 PM

As a part of a family raising high quality feeder calves on native grass pastures that is a grossly overstated claim about cattle producer profits! Our costs have gone over the top for everything we have to buy to raise those calves.......and it is very doubtful the returns have kept up with those costs, but we can hope while holding down our costs as much as possible. Not to mention a mean spirited 'wish' for feed lot operators. Good Grief!


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