Jul 30, 2014
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Profit Tracker: No Dog Days Here

July 1, 2014
By: Wyatt Bechtel, Dairy Today google + 
BT Rotator Feedlot 12
The dog days of summer are nowhere to be found with profits continuing to increase for both cattle and hog producers.  

The dog days of summer are nowhere to be found with profits continuing to increase for both cattle and hog producers. Cattle feeders recorded average profits of $280.08 per head last week, up significantly from the previous week, according to the Sterling Beef Profit Tracker. The margins represent a $442 per head improvement over the average losses of $162 recorded last year at this time, according to estimates developed by John Nalivka, president of Sterling Marketing, Vale, Ore.

Beef cutout values increased $6 per cwt. last week, while beef packer margins saw a big swing increasing by $31.95 to a margin of $81.07 per head. A week ago packers were making just $49.12 on every animal processed, and earnings totaled a little less at $73.15 per head the same time last year.

Farrow-to-finish hog margins increased $10.20 per head to more than $101 per head. Negotiated cash hog prices rallied almost $6 per cwt. to $127.22 per cwt. Pork packer margins saw a down turn with losses of $0.18 per head, compared to a profit of $3.87 last week.

The continued rise in both cattle feeding and farrow-to-finish profits is due to significantly higher cash prices and lower overall feed prices. Cash prices for fed cattle are nearly $35 per cwt. higher than last year, and negotiated hog prices are approximately $25 per cwt. higher than last year.

Cow-calf producers have also seen a drastic change in profit margins compared to the past few years. Currently producers are averaging $480 in profit per cow, that’s nearly double the $243.05 made last year and more promising than the $153.60 margin reported in 2011.

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