Pork producer margins improve, packing margins decline

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Hogs Pork producer margins improved more than $12 per head last week, with margins now a negative $4.57 per hog marketed, according to the Sterling Pork Profit Tracker. Negotiated cash hog prices improved $5.62 per hundredweight for the week $88.44. Pork packer margins declined $9.67 per head for the week, resulting in losses of $10.06 per head, according to estimates developed by Sterling Marketing, inc., Vale, Ore.

Cattle feeding margins declined last week as a result of higher feeder cattle prices at the time of placement and higher feed costs during the feeding period.

Cattle feeding margins declined nearly $42 per head for the week, leaving per head losses at $91 per head, according to the Sterling Beef Profit Tracker. Beef packers saw their margins improve $35 per head, leaving losses at $17 per head. The Sterling Beef Profit Quotient declined 117 points for the week and the industry profitability index is now negative 279.2.

A year ago cattle feeders sold cash cattle at $119.68 per hundredweight, resulting in losses of $101.95 per head. Last year cash hogs fetched $79.32 per hundredweight, resulting in losses of $0.60 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 Pork Profit Tracker for the week ending May 3:

  • Average farrow-to-finish margins: -$4.57 per head.
  • Average pork packer margins: -$10.06 per head.

The Sterling Beef Profit Tracker for the week ending May 4:

  • Average feedyard margins: -$91.11 per head.
  • Average packer margins: -$17.24 per head.
  • Sterling Profit Quotient: -279.2.

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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