Cash cattle and wholesale beef prices moved higher last week, increasing profit margins for both cattle feeders and beef packers. Pork producers saw modest per head losses.
Cattle feeders have experienced their best month in years with prices reaching record levels. Hog producers, however, are struggling to keep margins out of the red.
As cash cattle prices have been on an upward trajectory in 2023, packer margins have correspondingly moved lower. Sterling Marketing’s weekly estimates are printing packer margins red for the first time in six years.
Cattle and hog harvest rates were lower last week with higher cash prices paid to farmers and feeders. Margins for both beef and pork packers are trending lower.
Cattle feeders saw their margins shrink $70 per head last week as a modest increase in market-ready supplies led packers to sharply cut their negotiated purchases.
Grilling season set to kick off as both packers and cattle feeders operating with profitable margins. Pork producers continue the struggle to reach profitability.
