Beef packers saw profits drop $54 per head to a loss of $18 per head. Pork packers saw average profits of $20 per head, down $2 from the previous week.

Negotiated cash cattle increased an average of $1.18 per cwt. the week ending Sept. 14 and profit margins dropped by $13 per head to an industry average of $130.66 per head, according to Sterling Marketing. Farrow-to-finish hog producers found positive margins of $16 per head last week, down $2.91 from the previous week.

The key is demand and managing feedlot break-evens as cattle numbers continue to decline, says John Nalivka, president of Sterling Marketing Inc.

Beef packers saw significant margin improvement the week ending August 30, while pork packer margins, though down from the previous week, were sharply higher than a year ago.

Current supply metrics have boosted the value of Select carcasses as a reflection of less lean trim with lower cull cow volume. Fed cattle sector still finds highest return as carcass quality increases.

Last week’s substantial drop in the breakeven feeding cost for feeder cattle placed on feed last week is significant to the market outlook, says John Nalivka, president of Sterling Marketing Inc., in the latest Sterling Profit Tracker.

Negotiated cash cattle retreated an average of $2.31 per cwt. The week ending Aug. 17 and profit margins dropped by $79 per head to an industry average of $167 per head, according to the Sterling Beef Profit Tracker.

Beef exports continue to follow current market conditions of declining beef production and higher domestic beef prices.

A look beyond last week’s headline news surrounding the sell-off in both Live Cattle and Feeder Cattle futures.

Cash markets found their footing following some positive news when HPAI testing of ground beef found no sign of the virus. Futures turned positive and cash cattle traded higher for the second consecutive week.