Profit Tracker

Profit Tracker: Cattle, Hog Margins Worst Since Summer 2020

Tue, 19 Dec 2023 16:14:30 GMT

Closeouts fell another $10 deeper into the red for cattle feeders last week as losses totaled an average of $110 per head, according to the Sterling Beef Profit Tracker . Meanwhile, beef packers saw their margins improve $44 per head, pulling packer margins out of the red and $28 into the black. Cattle feeders have now seen a month’s worth of losses on closeouts.

For the week ending Dec. 16, cash cattle prices averaged $168.34 per cwt., which is roughly $1 lower than the previous week. Wholesale beef prices posted an average of $287.09 per cwt., roughly $0.75 per cwt. lower than the previous week. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $437 per head, down about $7 per head from the previous week, and about $79 less than feed costs for cattle sold the same week a month ago. Feed costs are 24% lower than a year ago.

Cattle marketed last week had a breakeven of $176.15 per cwt., while cattle placed on feed last week have a breakeven of $162.38 per cwt., which is about $4 per cwt. lower than a month ago. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $219.23 per cwt., or $6 per cwt. less than a month ago. The feeder steer price is 19% higher than last year.

The estimated total cost for finishing a steer last week was $2,466 per head, up 16% from last year’s estimate of $2,071 per head.

Fed cattle slaughter totaled an estimated 505,571 411,570, up 11,000 head from the previous week and 33,846 more than the same week last year. Packing plant capacity utilization was estimated at 86.3% compared to 82.5% last year.

Farrow-to-finish hog producers saw losses of $57 per head last week, about $6 more than losses the previous week. Pork producers saw losses of about $12 per head the same week a year ago. Lean carcass prices averaged $50.96 per cwt., or $3.88 per cwt. lower than the previous week and down $33.13 from last year (-40%).

Pork packers saw profits of about $62 per head, or $8 per head more than the previous week, and their best profit margins since October 2021. Last year pork packers saw losses of $1 per head. Hog slaughter was estimated at 2.689 million head, up 15,000 head from the previous week and up 109,000 head from last year.

Pork packer capacity utilization was estimated at 99.7% compared to 93.5% last year.

(Note: The Sterling Beef Profit Tracker calculates an average beef cutout value for the week in its estimates for feedyard and packer margins. Other prices in the weekly Profit Tracker also are calculated weekly averages. Feedyard margins are calculated on a cash basis only with no adjustment for risk management practices. The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs. Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

Profit Tracker: Cattle And Hog Margins Positive

Fri, 07 Jul 2023 19:15:54 GMT

Cattle and hog finishing margins are both positive for the third consecutive week.

Cattle feeding margins posted average profits of $150 per head last week, $27 higher than the previous week. Cash prices for fed cattle rose about $1 last week to $108 per cwt., but margins have made gains due to significantly lower feeder cattle prices calculated in closeouts, according to the Sterling Beef Profit Tracker .

Cattle marketed last week were purchased last spring at prices diminished significantly by the onset of the coronavirus pandemic. Feeder steer prices factored into last week’s Profit Tracker were $121.60 per cwt., which is $20 per cwt. lower than last year. Those lower feeder cattle prices produced an average breakeven of $97 for cattle marketed last week. The previous week’s breakeven price was $98 per cwt., and a year ago the breakeven was $112 per cwt. A year ago cattle feeders lost an average of $38 per head.

Packer margins declined $39 per head last week, though profits remain at $312 per head. Last week’s beef cutout price averaged $214 per cwt., a decline of $2 per cwt.

Feedyard margins reported by the Sterling Beef Profit Tracker, by Sterling Marketing, Vale, Ore., are calculated on a cash basis only with no adjustment for risk management practices.

(Note: The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs.)

Sterling Marketing projects 2020 feedyard margins to average a $10 profit per head, while annual packer profits are projected at $314 per head. Cash cow-calf margins for 2020 are projected at $57 per calf.

Farrow-to-finish pork producers have seen their margins improve significantly over the past month with rising lean carcass prices. Last week saw average closeouts post $24 per head profits, about even with the previous week, and $38 per head better than a month ago.

Lean hog carcass prices traded at $67.05 per cwt., $0.33 per cwt. higher than the previous week. Lean carcass prices are $12.93 per cwt. higher than a month ago, and $10.86 higher than the same week a year ago. A year ago pork producers lost an average of $14 per head.

Pork packers saw average profits of $50 per head last week, about $3 per head more than the previous week.

Sterling Marketing projects 2020 annual per head losses for pork producers at $18 per head, while projected packer profits are $59 per head.

(Editor’s note: Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

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Fall Rally Continues For Fed Cattle

Profit Tracker: Modest Profits For Cattle And Hogs

Fri, 07 Jul 2023 19:15:54 GMT

Cattle and hog finishing margins are both positive for the fourth consecutive week.

Cattle feeding margins posted average profits of $136 per head last week, $14 per head less than the previous week. Cash prices for fed cattle declined nearly $1 on average to $107 per cwt., but margins held positive due to significantly lower feeder cattle prices calculated in closeouts, according to the Sterling Beef Profit Tracker.

Cattle marketed last week were purchased last spring at prices diminished significantly by the onset of the coronavirus pandemic. Feeder steer prices factored into last week’s Profit Tracker were $122.16 per cwt., which is $19 per cwt. lower than last year. Those lower feeder cattle prices produced an average breakeven of $97 for cattle marketed last week. The previous week’s breakeven price was also $97 per cwt., and a year ago the breakeven was $111 per cwt. A year ago cattle feeders lost an average of $10 per head.

Packer margins declined $46 per head last week, though profits remain at $267 per head. Last week’s beef cutout price averaged $210 per cwt., a decline of $4 per cwt.

Feedyard margins reported by the Sterling Profit Tracker, by Sterling Marketing, Vale, Ore., are calculated on a cash basis only with no adjustment for risk management practices.

(Note: The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs.)

Sterling Marketing projects 2020 feedyard margins to average a $10 profit per head, while annual packer profits are projected at $314 per head. Cash cow-calf margins for 2020 are projected at $57 per calf.

Farrow-to-finish pork producers have seen their margins improve significantly over the past month with rising lean carcass prices. Last week saw average closeouts post $20 per head profits, about $4 lower than the previous week, and $2 per head better than a month ago.

Lean hog carcass prices traded at $66.29 per cwt., $1.24 per cwt. less than the previous week. Lean carcass prices are $2.47 per cwt. higher than a month ago, and $5.61 higher than the same week a year ago. A year ago pork producers lost an average of $7 per head.

Pork packers saw average profits of $59 per head last week, about $9 per head more than the previous week.

Sterling Marketing projects 2020 annual per head losses for pork producers at $18 per head, while projected packer profits are $59 per head.

(Editor’s note: Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

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Cattle Trade: Cash And Futures Lower

Profit Tracker: Modest Profit Holding Pattern

Fri, 07 Jul 2023 19:15:54 GMT

Cattle and hog finishing margins are both positive for the sixth consecutive week.

Cattle feeding margins posted average profits of $47 per head last week, $27 per head more than the previous week. Cash prices for fed cattle improved nearly $2 per cwt. on average to $106 per cwt., according to the Sterling Beef Profit Tracker .

Cattle marketed last week were purchased last spring at prices diminished significantly by the onset of the coronavirus pandemic. Feeder steer prices factored into last week’s Profit Tracker were $130.83 per cwt., which is $7 per cwt. lower than last year. Those lower feeder cattle prices produced an average breakeven of $102.69 for cattle marketed last week. The previous week’s breakeven price was $102.33 per cwt., and a year ago the breakeven was $112.56 per cwt. A year ago cattle feeding profits were $28 averaged $25 per head.

Packer margins improved $32 per head last week, with total profits at $306 per head. Last week’s beef cutout price averaged $209 per cwt., a gain of $4 per cwt.

Feedyard margins reported by the Sterling Profit Tracker, Sterling Marketing, Vale, Ore., are calculated on a cash basis only with no adjustment for risk management practices.

(Note: The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs.)

Sterling Marketing projects 2020 feedyard margins to average $10 profit per head, while annual packer profits are projected at $314 per head. Cash cow-calf margins for 2020 are projected at $57 per calf.

Farrow-to-finish pork producers have seen their margins improve this fall with rising lean carcass prices. Last week saw average closeouts post $12 per head profits, down $5 from the previous week and about $12 per head less than a month ago.

Lean hog carcass prices traded at $64.52 per cwt., $0.91 per cwt. less than the previous week. Lean carcass prices are $16.07 per cwt. higher than the same week a year ago. A year ago pork producers lost an average of $35 per head.

Pork packers saw average profits of $37 per head last week, down about $5 per head from the previous week.

Sterling Marketing projects 2020 annual per head losses for pork producers at $18 per head, while projected packer profits are $59 per head.

(Editor’s note: Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

Profit Tracker: Beef Packer Margins Decline 33%

Fri, 07 Jul 2023 19:15:50 GMT

Last week saw a significant decline in beef packer margins – 33%. It’s all relative, of course, since beef packers continued to find profits of $332 per head, according to the Sterling Beef Profit Tracker . Still, it was $158 less than the stunning $490 per head margins from the previous week.

On a percentage basis, cattle feeding margins dropped about 90%, from $108 per head two weeks ago to just $10 per head last week. Flirting with breakeven is not where cattle feeders believe this market should be given the fundamentals, but here we are.

Cash cattle prices declined about $3.50 per cwt. last week to an average of $106. Coupled with feed costs that are $15 per head higher and feeder steer prices averaging $30 per head higher, profit margins quickly eroded. Packers saw their margins shrink due to a $20 per cwt. decline in the beef cutout, which averaged $217.90. The cost of finishing a steer last week was calculated at $1,431 which is $49 higher than the previous week, but $121 lower than a year ago. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.

Cash cattle prices were about $13 per cwt. lower than the same week a year ago. The beef cutout price was about $1 higher than the same week a year ago.

A year ago cattle feeders were earning $68 per head. Feeder cattle represent 69% of the cost of finishing a steer compared with 73% a year ago.

Farrow-to-finish pork producers saw their margins fall $2.50 per head to $3. Lean carcass prices traded at $55.79 per cwt., a decline of $2.77 per cwt. from the previous week, and $6.07 lower than a month ago. A year ago pork producers lost an average of $26 per head. Pork packer margins averaged a profit of $43 per head last week, a $6 per head increase from the previous week.

Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2020 will average $51 per cow. For feedyards, Nalivka projects an average profit of $0 per head in 2020, and packer margins are projected to average $300 per head.

For farrow-to-finish pork producers, Nalivka projects 2020 will produces losses of $18 per head. Pork packers are projected to earn $48 per head in 2020.

Profit Tracker: Growing Packer/Feeder Margin Spread

Fri, 07 Jul 2023 19:15:50 GMT

The widening spread between feedlot and packer margins underscores the leverage the large packing companies wield. Beef packer margins jumped $83 per head (20%) last week to $387. The gains were mainly due to rapidly increasing wholesale beef prices, little of which translated into higher fed cattle prices.

Average prices for fed steers was $112.28 per cwt. the week ended Jan. 29, which produced average feeding margins of $47 per head. That resulted in a $340 spread between packer and feedlot profits, according to the Sterling Beef Profit Tracker.

The beef cutout average was $229 per cwt, or $11 per cwt. higher than the previous week. The cutout was also $16 per cwt. higher than the same week a year ago, while fed cattle prices were $10 per cwt. lower than a year ago. A year ago packers saw profits of $73 per head, some $314 less than this year.

The total cost for finishing a steer marketed last week was $1,479, about $5 more than the same week a year ago. Last year cattle feeders saw profits of about $185 per head the final week of January. This year feeder cattle represent 65% of the cost of finishing a steer compared with 72% a year ago. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.

Farrow-to-finish pork producers saw their margins improve from a $2 per head loss to breakeven last week. Lean carcass prices traded at $58.76 per cwt., $1.63 higher than the previous week, and $2.27 higher than a month ago. A year ago pork producers lost an average of $5 per head. Pork packer margins averaged a profit of $42 per head last week, about $3 per head higher than the previous week.

Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2021 will average $123 per cow. For feedyards, Nalivka projects an average profit of $43 per head in 2021, and packer margins are projected to average $251 per head.

For farrow-to-finish pork producers, Nalivka projects 2021 will produces losses of $13 per head. Pork packers are projected to earn $37 per head in 2021.

Profit Tracker: Cattle Margins Slip, Hogs In The Black

Fri, 07 Jul 2023 19:15:50 GMT

Cattle traded more than $1 higher but rising feed costs erased some of the modest profits found on average feedyard closeouts last week. Cattle feeding margins declined $23 per head to an average of $25 the week ending Feb. 5, according to the Sterling Beef Profit Tracker .

Total costs for finishing a steer have climbed above year-ago for the first time since January 2020 at $1,519, about $14 higher than last year.

Despite higher bids for cash cattle, beef packers saw their margins increase $3 to $392 per head. The beef cutout price increased $4 per cwt. to $233.71. The result was a packer/feeder margin spread of $367 per head.

Beef packer capacity utilization was estimated at 89.6% with an estimated 653,000 head slaughtered. A year ago packer capacity was estimated at 86.9% with a weekly kill of 631,261 head. Carcass weights this year are running 19 pounds heavier at 846 pounds.

Beef packer leverage in the current market is evident in the fact cash cattle prices are $7 per cwt. lower than the same week a year ago, yet the beef cutout price was $23 per cwt. higher. A year ago packers saw profits of $77 per head while feeding margins were $143 per head. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.

Farrow-to-finish pork producers saw their margins climb out of the red for the first time in weeks, with profits of $7.37 per head. Lean carcass prices traded at $64.49 per cwt., an increase of $5.73 per cwt. from the previous week, and $10 per cwt. higher than a month ago. A year ago pork producers lost an average of $15 per head.

Pork packer margins averaged a profit of $30 per head, down $12 per head from the previous week, but $13 per head higher than last year. Pork packer capacity utilization was estimated at 95.7%, compared to 95% a year ago.

Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2021 will average $123 per cow. For feedyards, Nalivka projects an average profit of $43 per head in 2021, and packer margins are projected to average $251 per head.

For farrow-to-finish pork producers, Nalivka projects 2021 will produces losses of $13 per head. Pork packers are projected to earn $37 per head in 2021.

Profit Tracker: Cattle Steady, Hog Margins Solid

Fri, 07 Jul 2023 19:15:46 GMT

Cattle feeding margins were relatively steady at an average of $83 per head last week, down just $2 according to the Sterling Beef Profit Tracker . Most of the inputs into closeouts are similar to year ago – except cash cattle are trading $5 per cwt. below last year. A year ago cattle feeders saw average profits of $162 per head as negotiated prices averaged $119.

Total costs for finishing a steer averaged $1,469 per head, about $2 per head higher than the third week of February last year.

Cash prices paid to cattle feeders the week ending Feb. 19 averaged $114.09 per cwt., or about $0.25 per cwt. higher than the previous week. Packer margins increased $22 per head to an average of $389 per head. The result was a packer/feeder margin spread of $306 per head, up $24 from the previous week’s $282.

Beef packer capacity utilization was estimated at 76.1%, down 7.7% from the previous week, with an estimated 552,000 head slaughtered. A year ago packer capacity was estimated at 86.3% with a weekly kill of 625,629 head. Carcass weights this year are running 16 pounds heavier at 846 pounds.

Beef packer leverage in the current market is evident in the fact cash cattle prices are $5 per cwt. lower than the same week a year ago, yet the beef cutout price was $28 per cwt. higher. A year ago packers saw profits of $69 per head while feeding margins were $162 per head. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.

Farrow-to-finish pork producers saw their margins in positive territory for the third consecutive week, with profits of $20 per head. Lean carcass prices traded at $72.26 per cwt., an increase of $3.16 per cwt. from the previous week, and $15 per cwt. higher than a month ago. A year ago pork producers lost an average of $18 per head.

Pork packer margins averaged a profit of $30 per head, up $1 per head from the previous week, but $15 per head higher than last year. Pork packer capacity utilization was estimated at 86.7% compared to 93.1% a year ago.

Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2021 will average $123 per cow. For feedyards, Nalivka projects an average profit of $43 per head in 2021, and packer margins are projected to average $251 per head.

For farrow-to-finish pork producers, Nalivka projects 2021 will produces losses of $13 per head. Pork packers are projected to earn $37 per head in 2021.

Profit Tracker: Cattle, Hog Feeding Margins Advance

Fri, 07 Jul 2023 19:15:38 GMT

Profit margins for both cattle and hog finishing operations saw modest gains last week but also carry significantly higher feed costs than a year ago.

Cattle feeders saw average profits of $222 per head the week ending Nov. 12 as the 5-area direst cash price advanced to $153.35 per cwt., according to the Sterling Beef Profit Tracker . Average cattle profit margins were the highest since the $252 per head profits estimated the week ending April 29 or this year.

Costs associated with finishing cattle, however, have increased dramatically since April. The cattle sold last week carried a total feed cost of $581 per head, which is 21% higher than the $458 feed cost for cattle sold the last week of April. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Oregon.

Cattle marketed last week had a breakeven of $137.50 per cwt., while cattle placed on feed last week have a breakeven of $$151.75 per cwt. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $175.83 per cwt., and feed costs of $582 per head. The feeder steer price is 10% higher than last year.

Estimated beef packer margins for the week ending Nov. 12 were $66 per head, down $4 per head from the previous week and down 90% from estimated margins a year ago of $633 per head. Last week’s Choice beef cutout averaged $258.96 per cwt., steady with the previous week and down $25 per cwt. (9%) from the same week a year ago.

The estimated total cost for finishing a steer last week was $1,925 per head, up 8% from last year’s estimate of $1,778 per head.

Cattle slaughter totaled an estimated 671,000 head, about 4,000 head more than the same week last year. Packing plant capacity utilization was estimated at 89.9% compared to 89.4% the previous week and 89.0% last year.

Farrow-to-finish hog producers found profits of $5 per head last week, up about $4 per head from the previous week, and up $39 per head compared to last year’s $34 per head losses. Lean carcass prices averaged $88.96 per cwt., down $3.05 per cwt. from the previous week but up $28.38 from last year (32%).

Pork packers saw profits of about $8 per head, or $4 per more than the previous week and $54 lower than the same week a year ago. Hog slaughter was estimated at 2.492 million head, down 85,000 head from the previous week and down 128,000 head from last year.

Pork packer capacity utilization was estimated at 92.7% compared to 95.8% the previous week and 97.4% last year.

(Note: The Sterling Beef Profit Tracker calculates an average beef cutout value for the week in its estimates for feedyard and packer margins. Other prices in the weekly Profit Tracker also are calculated weekly averages. Feedyard margins are calculated on a cash basis only with no adjustment for risk management practices. The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs. Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

Profit Tracker: Beef Packer Losses Largest since 2017

Fri, 07 Jul 2023 19:15:35 GMT

The pendulum continues swinging toward cattle feeders as cash prices jumped $3 last week and left packers with their largest negative margins in nearly six years. Average cattle feeding margins were estimated at $165 per head the week ending Nov. 26, 2022, according to the Sterling Beef Profit Tracker . Those average margins were up $41 per head from the previous week.

Beef packer margins were estimated at a $28 per head loss, the largest per head loss for packers since Jan. 2017, according to Sterling’s database. That compares with packer profits of $488 per head the same week a year ago.

Last week’s Choice beef cutout averaged $251.23 per cwt., down $1.86 from the previous week and down $18.81 per cwt. from a year ago.

Costs associated with finishing cattle have increased dramatically since April. The cattle sold last week carried a total feed cost of $597 per head, which is 23% higher than the $465 feed costs for cattle sold the same week a year ago. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Oregon.

Cattle marketed last week had a breakeven of $144.63 per cwt., while cattle placed on feed last week have a breakeven of $151.69 per cwt. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $174.62 per cwt., and feed costs of $590 per head. The feeder steer price is 13% higher than last year.

The estimated total cost for finishing a steer last week was $2,024 per head, up 15% from last year’s estimate of $1,725 per head.

Cattle slaughter totaled an estimated 581,000 674,000 head, about 14,000 head more than the same week last year. Packing plant capacity utilization was estimated at 78.1% compared to 90.6% the previous week and 77.9% last year.

Farrow-to-finish hog producers found profits of $8 per head last week, up about $6 per head from the previous week, and up $52 per head compared to last year’s $44 per head losses. Lean carcass prices averaged $88.20 per cwt., up $0.47 per cwt. from the previous week and up $30.77 from last year (35%).

Pork packers saw losses of about $3 per head, or $10 per head less than the previous week and $53 lower than the same week a year ago. Hog slaughter was estimated at 2.223 million head, down 376,000 head from the previous week and down 31,000 head from last year.

Pork packer capacity utilization was estimated at 82.7% compared to 96.7% the previous week and 84.3% last year.

(Note: The Sterling Beef Profit Tracker calculates an average beef cutout value for the week in its estimates for feedyard and packer margins. Other prices in the weekly Profit Tracker also are calculated weekly averages. Feedyard margins are calculated on a cash basis only with no adjustment for risk management practices. The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs. Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

Profit Tracker: Futures Drag on Cash Cattle

Fri, 07 Jul 2023 19:15:32 GMT

Analysts have noted the exodus of longs from the live cattle futures market over the past week. It’s a seasonal pattern that was accelerated by volatility in the equity markets. The result was a cash cattle market trading $1.30 per cwt. lower the week ending March 18 to $164.25. Average cattle feeding margins declined by $21 per head to $194, according to the Sterling Beef Profit Tracker . Packer margins fell $20 to an average of $77 per head. Wholesale beef prices declined $2.11 per cwt. to $283.13 per cwt.

Cattle feeders in the North have experienced dismal winter feeding conditions which slowed cattle performance and eroded margins. The South experienced much more favorable conditions.

Cattle sold last week carried a total feed cost of $599 per head, which is 25% higher than the $441 feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $150.39 per cwt., while cattle placed on feed last week have a breakeven of $156 per cwt. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $186.97 per cwt., and feed costs of $543 per head. The feeder steer price is 19% higher than last year.

The estimated total cost for finishing a steer last week was $2,106 per head, up 16% from last year’s estimate of $1,763 per head.

Fed cattle slaughter totaled an estimated 490,918 head, about 2,000 head fewer than the previous week and 4,000 head fewer than the same week last year. Packing plant capacity utilization was estimated at 85.7% compared to 84.9% last year.

Farrow-to-finish hog producers saw losses of $8 per head last week, about $3 less than the previous week. Pork producers saw profits of $84 per head the same week a year ago. Lean carcass prices averaged $80.81 per cwt., steady with the previous week.

Pork packers saw profits of about $2 per head, about $4 lower than the previous week. Last year pork packers saw losses of about $24 per head. Hog slaughter was estimated at 2.492 million head, down 3,000 head from the previous week but up 67,000 head from last year.

Pork packer capacity utilization was estimated at 92.6% compared to 90.0% last year.

(Note: The Sterling Beef Profit Tracker calculates an average beef cutout value for the week in its estimates for feedyard and packer margins. Other prices in the weekly Profit Tracker also are calculated weekly averages. Feedyard margins are calculated on a cash basis only with no adjustment for risk management practices. The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs. Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)