Profit margins for pork producers improved $2 per head last week, leaving margins at $91 per head. Margins are down about $20 per head from a month ago when profits were at their peak of $111, according to the Sterling Pork Profit Tracker. Last week’s margins are $148 per head better than a year ago when losses totaled $57 per head.
A year ago some market-ready hogs had no final home and their value was near zero. Last week marked the 17th consecutive week with positive margins. The Pork Profit Tracker is calculated by Sterling Marketing Inc., Vale, Ore.
Lean carcass prices averaged $114.17 per cwt. last week, $1.38 per cwt. higher than the previous week, and $6.17 lower than a month ago. The quoted carcass price from a year ago was $35.35 per cwt.
Pork packers saw average profits of $22 per hog last week, a $9 improvement from the $13 per head profits the week before. A year ago pork packers made $75 per hog.
Pork packer capacity utilization was estimated at 70.2% compared to 87% a year ago. The decline in capacity utilization is due to the holiday-shortened week, which was not a factor in the year ago data, and the JBS cyberattack. Estimated market hog slaughter last week was 1,975,000 head.
Sterling Marketing president John Nalivka projects annual cash profit margins for hogs at $41 for 2021, and packer profits at $13 per head.
