$100/ head! Now that is an headline!
Feeding losses now under $100, packers margins decline
Greg Henderson, Editor, Associate Publisher, Drovers CattleNetwork | Updated: September 11, 2012
Cattle feeding margins improved $31 per head last week, leaving average losses under $100 per head for the first time in two months, according to the Sterling Beef Profit Tracker.
Beef packers saw their margins decline nearly $25 per head on the week to slip to a negative $33 per head. The Sterling Beef Profit Quotient gained 87 points for the week and the industry profitability index is now negative 245, according to estimates developed by Sterling Marketing, Inc., Vale, Ore.
Pork producer margins declined $15 per head last week, with margins now $29 in the red per hog marketed. Negotiated cash hog prices declined $6.71 per hundredweight last week. Pork packer margins improved $5.75 per head for the week, pushing margins to more than $17per head, according to the Sterling Pork Profit Tracker.
A year ago cattle feeders sold cash cattle at $117 per hundredweight, resulting in losses of $109 per head. Last year cash hogs fetched $85.17 per hundredweight, resulting in losses of $1.64 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 Beef Profit Tracker for the week ending Sept. 8:
- Average feedyard margins: -$78.46 per head.
- Average packer margins: -$33.34 per head.
- Sterling Profit Quotient: -245.2.
The Sterling Pork Profit Tracker for the week ending Sept. 7:
Average farrow-to-finish margins: -$29.01 per head.
- Average pork packer margins: $17.03 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.
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