Profit Tracker: Extreme Losses Return

BT_Moving_Steers
BT_Moving_Steers

Last week erased the modest gains cattle feeders saw the past few weeks and tacked on more heavy losses. Feedyard closeouts slumped an additional $166 per head producing average industry losses of $486 per head, according to Sterling Marketing, Inc., Vale, Ore. Last week’s 5-area cash price was $131.22 per cwt., $37.40 per cwt. short of breakeven.

Beef packer margins increased $17 per head, resulting in average profits of $29 on every animal processed. Packer margins have declined $85 per head over the past month.

A month ago cattle feeders were losing $474 per head, while a year ago profits were pegged at $209 per head, according to Sterling Marketing. Feeder cattle represent 80% of the cost of finishing a steer, significantly higher than last year’s 75%.

A month ago beef packers were earning $117 for every animal processed, while a year ago packers were losing $75, Sterling Marketing estimates.

Farrow-to-finish pork producers lost $20 per hog last week, down from a profit of $1.50 per head the previous week, and down $40 per head from a month ago.

Pork packers saw their margins improve $5 per head to $27. Negotiated prices for lean hogs were $58.33 per cwt. last week, a decrease of $7.96 per cwt. from the previous week. Cash prices for fed cattle are $36 per cwt. lower than last year, and negotiated hog prices are $30 per cwt. lower than last year.

Nalivka projects average cash profit margins for cow-calf producers at $490 per cow this year. Last year’s estimated average cow-calf margins were $526 per cow. Cow-calf profits for 2016 are projected at $277 per cow.

 

Latest News

Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps
Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps

U.S. employers report challenges in finding suitable job candidates with work-ready skills to fill open roles in ag. The AgCareers.com U.S. Skills Survey offers insights, data and trends to address skill development.

USDA Authorizes CRP Graze and Hay Donations to Wildfire Victims
USDA Authorizes CRP Graze and Hay Donations to Wildfire Victims

Conservation Reserve Program (CRP) participants can donate emergency grazing authority to ranchers in Nebraska, Oklahoma and Texas impacted by recent wildfires.

New Guide Helps Producers Maximize Values of Cull Cows
New Guide Helps Producers Maximize Values of Cull Cows

A new resource developed by the National Cattlemen’s Beef Association and CattleFax helps cattle producers maximize profitability from their culling decisions.

How Ranchers can Feel More Energized and Reduce their Aches and Pains
How Ranchers can Feel More Energized and Reduce their Aches and Pains

We can’t care for our livestock, resources and families without caring for ourselves first. That seems even harder during the busy seasons, but it isn’t impossible and even one thing a day makes a difference.

Profit Tracker: Packer/Feeder Margin Spread Grows
Profit Tracker: Packer/Feeder Margin Spread Grows

Last week’s rally to new record prices pushed packer and feeder margins in opposite directions. Pork producer margins continue higher with prices now above year ago.

Spring Forward Horse Health with Vaccinations
Spring Forward Horse Health with Vaccinations

As horses are exposed to the environment, wildlife and mosquitoes that transmit the five core equine diseases, it’s important to follow the core equine disease vaccination protocol.