Farrow-to-finish margins take steep hit

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Farrow-to-finish margins took a steep hit last week, dropping from $111.27 to $102.18 per head for the week ending July 25, according the Sterling Pork Profit Tracker. While the decrease is significant, it is still above the $101.44 per head price from a month ago, and much higher from the $17.59 price per head a year ago. The price for lean hogs is also down to $128.01 from the previous week’s $132.14.

Pork packer margins have made another increase last week, hitting $5.26, up from the previous week’s $3.11 per head. Last month, pork packers were losing $0.27 per head, and losing $10.40 per head a year ago. The pork cutout value declined last week, dropping to $132.91 from the previous price of $136.11.

After taking a $22 hit for the week ending July 19, feedlot margins came back with a vengeance tipping $357.58 for the week ending July 26, says the Sterling Beef Profit Tracker’s latest report. This places feedlot margins well ahead of prices a year ago when feeders were losing $148.49 per head and up from the $280.08 profit per head a month ago.

Fed cattle prices continue to climb, jumping $7.08 from the previous week, and ending on $163.34 per hundredweight. Fed cattle prices have continued to climb within the year when prices were $118.94 per hundredweight a year ago and $154.46 per hundredweight a month ago. Feeder steers continue to decline, only hitting a slight $0.21 per hundredweight drop to $$213.25. The recent downward trend is still well above the $145.53 per hundredweight price feeder steers brought a year ago and the $207.85 per hundredweight price from a month ago.

Packer margins saw more gains last week, hitting $71.50 per head compared to the $68.10 in the previous week. While this is down from the $80.89 per head profit from a month ago, it’s well above a year ago when packers were only making $17.69. Beef cutout value was up to $252.69 last week, compared to $248.57 in the previous week. This is close to $10 more than a month ago, and significantly up from the $186.06 price a year ago.

The Sterling Pork Profit Tracker for the week ending July 11:

  • Average farrow-to-finish margins: $104.96 per head.
  • Average pork packer margins: $2.80 per head.

The Sterling Beef Profit Tracker for the week ending July 19:

  • Average feeder margins: $306.07 per head
  • Average beef packer margins: $73.49 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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