Farrow-to-finish margins improved once again, finishing the week ending February 7 at $18.30, compared to $13.71 the previous week, negative $7.22 one month ago and negative $11.23 at this time last year, according to the Sterling Pork Profit Tracker. Lean hogs increased by more than $2 last week, finishing the week at $84.26 compared to $82.24 the previous week. Feed costs increased to $93.56 compared to $90.36 the previous week.
Pork packer margins declined last week to $8.17 compared to $9.67 the previous week and $1.87 one month ago. The pork cutout value increased last week to $91.31, compared to $90.10 the previous week and $84.04 one month ago.
After spending multiple weeks earning positive margins, beef packer margins retreated to negative territory the week ending February 8, 2014, according to the Sterling Beef Profit Tracker. Packer margins topped $121 in late January but fell to negative $56.86 last week. The beef cutout value decreased by $15.70 last week to $216.10. While the cutout value dropped over the week, it is still higher on a historical basis. One year ago at this time, the cutout value was at $182.50 , and at this time last month, the cutout value was at $209.20.
Feeder margins also experienced declines last week, falling from $171.06 the previous week to $145.47 the week ending February 8. Last year at this time, fed steers were negative $77.92. Feed costs increased by $6.13 while total costs dropped nearly $6. Fed steers dropped $4.78 to $140.74 per hundredweight but are nearly $15 per hundredweight higher than they were at this time a year ago. Feeder steers also decreased last week and finished the week at $163.02 compared to $164.52 the previous week.
The Sterling Pork Profit Tracker for the week ending February 7:
- Average farrow-to-finish margins: 18.30 per head.
- Average pork packer margins: $8.17 per head.
The Sterling Beef Profit Tracker for the week ending February 8:
- Average feeder margins: $145.47 per head.
- Average beef packer margins: -$56.86 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.