Pork producers and packers lost money last week with average margins falling lower according to the Sterling Pork Profit Tracker.
Negotiated cash hog values fell $1.10 per hundredweight to $92.75 pulling producer profit margins $2.17 lower to negative $0.21 per head. Margins are $12.50 below margins from a month earlier but better than the negative $1.53 average this time a year earlier.
Losses for packers more than doubled last week, moving from negative $0.73 to negative $1.55 per head.
Feeder margins more than doubled the previous week’s average with averages reaching $89.08 per head according to the Sterling Beef Profit Tracker.
The current profit tracker shows feeder margins for the week ending Oct. 12 were 48.43 per head higher than the previous week and 118.08 per head higher than the negative $29 average a month earlier. Margins improved with the help of higher cash prices, up $2 to $128 compared to the previous week and feeder steer prices increasing $3 per hundredweight to $167.
Feeder margins were able to overcome rising feed costs which increased to $331.68 per head according to estimates by Sterling Marketing, Inc., Vale, Ore.
Packer margins continue to see negative margins, although higher beef prices allowed their profits to recover $1.12 per head to settle at negative $58.57 per head.
The Sterling Pork Profit Tracker for the week ending October 11:
- Average farrow-to-finish margins: -$0.21 per head.
- Average pork packer margins: -$1.55 per head.
The Sterling Beef Profit Tracker for the week ending October 12:
- Average feedyard margins: $89.08 per head.
- Average packer margins: -$58.57 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.