Pork packers saw their best week since the end of January with Sterling estimating last week’s average margin at $6.98/head.
The W. Corn Belt Negotiated Lean Carcass Value averaged $79.49/cwt. against $83.22/cwt. the prior week while the Pork Cutout averaged $87.31/cwt. and nearly unchanged from the prior week.
With increased hog numbers, plant utilization averaged 93.8% compared to 89.9% a week earlier. Farrow-to-finish margins averaged $27.08/head compared to $28.47/head the previous week and $80.53/head a year ago.
The recently released Sept. 1 Hogs and Pigs Report indicated producers pulled back with the total Hogs and Pigs Inventory down 2% from the prior year on Sept. 1. It certainly adds up with the shrinking margin.
View the full Sterling Pork Profit Tracker for the week ending Sept. 26.
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.)
