Profit Tracker: Cattle Margins Improve, Pork Declines
Cattle feeders saw average profit margins exceed $200 per head last week while pork producers found losses of $44 per head, according to the Sterling Profit Trackers.
Cattle feeding margins were estimated at $201.26 for the week, an increase of $110 per head from the prior week. Margins were boosted by a $4 per cwt. rally in fed cattle prices to 5-area average of $137.61, according to the Sterling Beef Profit Tracker.
Beef packer margins averaged $507.72 for the week, $72 per head lower than the previous week. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale Oregon.
Total cost for finishing a steer for cattle marketed last week was estimated at $1,725, including a feed cost of $465 per head. Feeder steers represented 68% of the cost of finishing a steer. Feedyard margins are calculated on a cash basis only with no adjustment for risk management practices.
Farrow-to-finish pork producers saw their margins decline $3 per head to a loss of $44 for the week. Lean carcass prices traded at $57.43 per cwt., $1.22 per cwt. lower than the previous week. A year ago pork producers earned $5 per head. Pork packers saw average profits of $51 per head, down $6 per head from the previous week, according to the Sterling Pork Profit Tracker.
(Editor’s note: Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)
