Profit Tracker: Feeding Margins Near Breakeven
Greg Henderson, FarmJournal's Pork
June 11, 2019
Profit margins for cattle feeders eroded further last week, slipping to near breakeven levels. According to calculations by Sterling Marketing, feedyard margins were $1.65 per head for the week ending June 7, 2019, a decline of $25 per head.
Cash fed cattle prices slipped another $2 per cwt., averaging $113.42 per cwt. for the week ending June 7. Packers saw their margins mostly steady at $231 per head, according to the Sterling Beef Profit Tracker.
The beef cutout declined $1 per cwt. to $219.90. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.
A year ago cattle feeders were losing an average of $17 per head. Feeder cattle represent 69% of the cost of finishing a steer compared with 71% a year ago.
Farrow-to-finish pork producers saw their margins decline $7 per head with profits of $40. Lean carcass prices traded at $78.55 per cwt., $1.28 per cwt. lower than the previous week. A year ago pork producer margins were positive $34 per head. Pork packer margins averaged a loss of $2.21 per head last week.
Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers...
more, including links to Sterling Beef & Pork Profit Trackers