Profit Tracker: Feedyard Margins Dip $31 Per Head

May 27, 2014 08:57 AM
 
Profit Tracker: Feedyard Margins Dip $31 Per Head

Cattle feeding margins dipped more than $31 per head lower last week to average $157. The loss in profitability was due to an average $1.86 per cwt. decrease in cash cattle prices, according to the Sterling Beef Profit Tracker.

Profit margins for pork producers dropped $3.08 per head last week to $72.59 per head. The decrease was tied to a $0.22 per cwt. loss in negotiated cash prices. Both beef and pork margins are calculated by John Nalivka, president, Sterling Marketing, Vale, Ore.

Cattle feeders’ profits last week were $271 per head more than at the same time last year when $114 per head losses were recorded. Beef cutout values remained steady with a slight increase, and packer margins increased $67.41 per head, leaving packers with per head gains of $20.89. A week ago packers recorded losses of $46 on every animal processed, while profits totaled $93 per head at the same time last year.

Farrow-to-finish hog margins posted a loss from last week, and are now more than $14.50 per head less than last month. Pork packers saw their margins increase slightly last week, with the average at $1.85 in the profit column for every animal processed.

The spike in both cattle feeding and farrow-to-finish profits this spring is due to significantly higher cash prices and lower overall feed prices. Cash prices for fed cattle are nearly $21 per cwt. higher than last year, and negotiated hog prices are $19 per cwt. higher than last year.

Back to news


Million Dollar Wildfire Relief Challenge

Click here to learn more about the Million Dollar Wildfire Relief Challenge, and see how you can help in the rebuilding effort.


 

Comments

 
Spell Check

No comments have been posted to this News Article

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by Barchart.com
brought-by
Close