Regarding margins, the pork industry and the beef industry both faced similar outcomes last week. The week’s average Lean Carcass Values at $111/cwt last week left farrow-to-finish margins averaging nearly $91/head.
Though packers saw a $1/cwt on the Pork Cutout to an average of $110.84/cwt, that gain was offset by the higher cost of market hogs and pushed estimated packer margins a $7/head loss.
View the full Sterling Pork Profit Tracker for the week ending July 12.
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.)
