Search - Pork Business

Cattle feeders experience largest average profits in seven years as packer margins dip into the red.

Cattle feeders saw average profits of more than $300 per head last week while pork producers found average losses of about $13 per head.

Cattle feeders sold more cattle last week than any week this year and at the highest price in history. Pork producers saw modest profits.

Profit margins for cattle feeders and packers continue pacing in opposite directions as shrinking supplies of market-ready cattle drive negotiated cash prices higher.

Packers have navigated through the tightest supplies of the season while maintaining profitability. Now, supplies are anticipated to increase seasonally which could swing more leverage in their favor.

Cash cattle prices declined last week for the first time in a month, but wholesale prices moved higher for the fifth consecutive week. Prices for yearling feeder cattle placed on feed topped $200 per cwt.

If a seasonal price decline develops as anticipated, this year’s starting point for cattle feeders is the best in a decade. Pork producers notch their second week of modest profits.

Wholesale beef prices continue to support packer margins even as negotiated cash cattle trade well-above the five-year average. Pork producers enjoy a market rally that has lifted margins out of the red.

During a bilateral meeting on Thursday, U.S. Trade Representative Katherine Tai discussed with Mexico’s Secretary of Economy Tatiana Clouthier various issues concerning energy and biotech corn.

Erik Lichtenberg, University of Maryland professor, says Congress could reorient farm bill conservation funds for climate change, but it could cut into their support.