Pork packers saw some marginal improvement in margins last week with the estimated average for last week $8/head in the red compared to - $10/head the prior week. Sterling’s estimate of kill floor capacity utilization was 90.5% with market hog kills at 2,343,957 compared to 1,902,215 the prior week.
The Cutout Value did gain during $2/cwt for the week to average $98.10 compared to $96.05 a week earlier. The Lean Carcass Price (W. Corn Belt) averaged $94.44/cwt and down $1/cwt from the previous week leaving farrow-to-finish operations with an estimated average margin of $57.95/head against $54.75 the prior week.
View the full Sterling Pork Profit Tracker for the week ending May 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.)
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