While still in positive territory, farrow-to-finish margins continued to slide last week with Sterling estimated average for the week at $46.88/head compared to $50.41/head the prior week. For the same week a year ago, margins were estimated at $82.08/head.
The W. Cornbelt Lean Carcass Value has fallen to $90.26/cwt. for last week’s average from $107.75/cwt. a year ago. At the same time, corn and meal prices are increasing and pushing the breakeven price higher. For hogs placed last week the breakeven price is $74.88/cwt. compared to $67.93/cwt. for hogs marketed last week. Packer margins continue to hover barely in black ink with Sterling’s estimated average for last week at $3.90/head.
View the full Sterling Pork Profit Tracker for the week ending Aug. 29.
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.)
