Profit Tracker
“The agricultural economy is inherently cyclical, and ag lenders are navigating the changing conditions across the sectors they serve,” said Jackson Takach, chief economist of Farmer Mac.
The estimated total cost for finishing a steer last week was $2,770 per head. Hogs placed for finishing last week had a breakeven at $68.36 per head.
While feedlot margins are declining in the beef industry, hog margins are increasing for U.S. pork producers. Here’s a look at the latest Profit Tracker from Sterling Marketing.
Hogs placed for finishing last week had a breakeven at $69.49 per head. The estimated total cost for finishing a steer last week was $2,702 per head, according to the Sterling Profit Trackers.
How did the beef and pork markets shake out last week?
Beef packers saw profits increase $26 per head to a total loss of $86 per head. That puts the packer/feeder margin spread at $289 per head in favor of the feeder. Meanwhile, pork packers saw average profits of $25 per head, up $2.68 from the previous week.
John Nalivka of Sterling Marketing shares his weekly Beef and Pork Profit Trackers, giving us a deeper look at what’s going on in the markets.
Negotiated cash cattle increased an average of $2.20 per cwt. the week ending Sept. 28. Farrow-to-finish hog producers found positive margins of $8.55 per head last week, down $1.75 from the previous week.
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.
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.
Profit margins for cattle sold for slaughter last week declined $55 per head, according to the Sterling Profit Tracker.
Cattle feeding margins declined by $80 per head last week as cash prices slumped $1 to $2 per cwt.
Cattle feeding margins improved $16 per head last week as cash prices inched higher less than $1 per cwt.
Cattle feeding margins improved $43 per head last week as cash prices gained nearly $2 per cwt.
Cattle feeding margins are rapidly declining as cash cattle prices retreat from spring highs
The pain eased somewhat for cattle feeders last week, but losses remain more than $170 per head.
It was another ugly week for cattle feeders.
Beef packers put away the red ink last week as they turned modest profits on every animal processed. Feedyard margins, however, slipped a little further away from positive.
Cash cattle prices dipped nearly 50 cents per cwt.
Whether you’re cattle feeder or packer, ledger sheets are full of red ink.
Cattle feeding margins declined $45 per head last week, leaving average per head losses at more than $77.
Cattle feeding margins improved nearly $25 per head last week, but average per head losses remain more than $32.
Cattle feeding margins declined nearly $53 per head last week, leaving average losses at $56 per head.
The financial pain of feeding cattle eased again last week, but losses remain more than $125 per head.
The pain eased somewhat for cattle feeders last week, but losses remain more than $97 per head.
Cattle feeding margins took another turn south last week after a nearly $4 per cwt. decline in fed cattle prices.