Lower feed costs push margins higher

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Farrow-to-finish margins increased last week and finished the week ending Feb. 14, 2014, at $22.41, compared to $18.30 the previous week, negative $4.74 one month ago and negative $17.70 at this time last year, according to the Sterling Pork Profit Tracker. Lean hogs improved $2.43 last week and finished the week at $86.67. Feed costs decreased slightly to $93.32, compared to $93.56 the previous week.

Pork packer margins also increased last week compared to the previous week, finishing the week at $8.23, up $0.18 from the previous week. The pork cutout value increased to $93.80 last week, compared to $92.31 the previous week, $85.54 one month ago and $80.88 at this time last year.

After falling early in February, feeder margins rallied last week. Feeder margins climbed to $209.54 per head last week, compared to $145.47 the previous week, $135.66 one month ago and negative $131.14 at this time last year. Both feed and total costs increased, with feed prices climbing less than $1 and total costs jumping $25.13 per head. Fed steers averaged $142.33 per hundredweight last week, compared to $140.74 the previous week. Feeder steers also increased, topping $166 compared to $163.02 the previous week.

Packer margins decreased again last week, falling to negative $83.20, compared to negative $56.86 the previous week, $52.08 one month ago and negative $96.55 one year ago at this time. The beef cutout value decreased by $7.45 last week to $208.63, compared to $216.10 the previous week.

The Sterling Beef Profit Tracker for the week ending February 15:

  • Average feeder margins: $209.54 per head.
  • Average beef packer margins: -$83.20 per head.

The Sterling Pork Profit Tracker for the week ending February 14:                                          

  • Average farrow-to-finish margins: $22.41 per head.
  • Average pork packer margins: $8.23 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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