Packer losses exceed $100 per head, feeding margins improve

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Cattle feeding margins improved $17 per head on lower costs associated with cattle shipped last week, leaving average losses at $78 per head, according to the Sterling Beef Profit Tracker.

Beef packers saw their margins decline $44 per head, pushing losses to $102.88 per head. The Sterling Beef Profit Quotient improved 42 points for the week and the industry profitability index is now negative 261.5, according to estimates developed by Sterling Marketing, Inc., Vale, Ore. A month ago the Sterling Beef Profit Quotient was a negative 163.9.

Pork producer margins declined $4.24 per head last week, with margins now at a negative $11.23 per hog marketed. Negotiated cash hog prices decreased $0.12 per hundredweight last week to $88.65. Pork packer margins declined $5.33 per head for the week, creating losses of $12.56 per head, according to the Sterling Pork Profit Tracker.

A year ago cattle feeders sold cash cattle at $123.96 per hundredweight, resulting in losses of $46.65 per head. Last year cash hogs fetched $87.78 per hundredweight, resulting in profits of $22.36 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 Feb. 9:

  • Average feedyard margins: -$77.92 per head.
  • Average packer margins: -$102.88 per head.
  • Sterling Profit Quotient: -261.5.

The Sterling Pork Profit Tracker for the week ending Feb. 8:

  • Average farrow-to-finish margins: -$11.23 per head.
  • Average pork packer margins: -$12.56 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.



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