Farrow-to-finish margins last week were reduced by more than 50% from the prior week with Sterling’s estimate for the week’s average at $7.84/head against $16.87/head the prior week as the W. Cornbelt price averaged $69.87/cwt. compared to $74.64/cwt. the prior week.
Hog numbers remain high with plant capacity utilization estimated by Sterling at 96.3% while the pork cutout lost $2/cwt. to average $80.24/cwt., a sharp decline from a year ago when the weekly average was $102.84/cwt.
Packer margins gained ground last week with the sharply lower hog cost, with Sterling’s average for the week at $12.62/head compared to $6.99/head the prior week. The economic picture for the pork industry has changed dramatically in the face of weak demand.
View the full Sterling Pork Profit Tracker for the week ending Oct. 17.
The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.
(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.)
