The pork industry saw erosion of margins for both hog producers and packers as the W. Cornbelt Lean Carcass Value averaged $74.64/cwt. for the week against $77.46/cwt. the prior week and the Pork Cutout fell to a weekly average of $74.64/cwt. from the prior week’s $77.46/cwt. average.
Consequently, Sterling’s estimate of farrow-to-finish margins averaged $16.87/head for the week and down from $18.93/head the prior week.
Packer margins were down $2/head from the prior week averaging $6.99/head. Hog numbers remain large with last week’s market hog slaughter at 2,566,579 and using 99% of plant capacity.
View the full Sterling Pork Profit Tracker for the week ending Oct. 10.
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.)
