The pork sector is experiencing margin pressures similar to the beef industry — though certainly not as distinct and large — due to current market hog numbers. Sterling’s average farrow-to-finish margins for the week were $18.84/head compared to $27.34/head a week earlier and $69.96/head a year ago.
At the same time, packers realized some minor improvement in margins. Sterling’s estimate for the week was $8.78/head compared to $7.27/head the prior week. Plant capacity utilization continues to hover around 96%.
View the full Sterling Pork Profit Tracker for the week ending Oct. 3.
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.)
