Pork producer margins back in the black, packers lower

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Profit margins for pork producers moved into positive territory last week as cash sales improved more than $2 per hundredweight. Margins were estimated at a positive $4.65 per head, according to the Sterling Pork Profit Tracker. Negotiated cash hog prices gained $2.22 per hundredweight last week to $93.79. Pork packer margins declined $3.51 per head for the week, resulting in losses of $6.56 per head.

The Sterling Pork Profit Tracker is calculated using actual weekly prices for hogs, feed costs, pork cutout prices, drop credits and other factors that influence profit margins.

The Sterling Pork Profit Tracker for the week ending May 31:

  • Average farrow-to-finish margins: $4.65 per head.
  • Average pork packer margins: -$6.56 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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