Pork
Cattle feeders earned a small profit on cattle sold last week, the first positive closeouts in months.
Cattle feeders turned a tidy profit for the second consecutive week.
Normally when profit margins decline $50-plus per head there’s no rejoicing.
Cattle feeders earned average profits of $68 per head last week, $30 per head more than the previous week.
The red ink has started to slow down for feedlots and cattle prices have rallied lately, giving beef producers something to be thankful for.
Last week’s market rally helped feedyards erase much of their red ink, but not all.
Feedyard margins saw only slight improvement last week as direct trade prices held steady.
Last week’s $4-plus rally in cash fed cattle prices cut average feedyard losses in half, leaving the red ink totaling $90 on every animal shipped.
Feedyard margins improved last week despite a $3 per cwt. decline in cash cattle prices.
Cowboys and packers finished 2016 on a high note, maintaining per head profits north of $100 for the week ended Dec. 30.
Feedyard margins declined $28 per head last week to total an average loss of $70 per head, according to the Sterling Beef Profit Tracker.
Feedyard margins dropped another $20 last week to total an average loss of $90 per head, according to the Sterling Beef Profit Tracker.
Calling losses of $193 per head an improvement may be painful, but it’s accurate.
Feedlot closeouts continue ending on positive notes.
Cattle feeders turned a profit for the eighth consecutive week.
Cattle feeders saw positive margins on closeouts for the ninth consecutive week.
Feedyard profit margins rebounded slightly after last week’s $2 rally in the cash fed cattle market.
Cash cattle prices were mostly steady last week, helping reduce cattle feeding losses by $46 per head. Packers maintain their leverage with profits at $275.
As expected, beef packer margins jumped wildly higher the week ending Aug. 17, while cattle feeding margins slipped into the red.
Pork producer margins dropped $15 per head last week due to a $7.59 per cwt. decline in lean carcass prices.
Both cattle and hog feeding enterprises continue showing modest losses while packers remain solidly profitable.
Average feedyard close-outs were printed in black ink last week for the first time in several months after a $3 per cwt. rally in cash cattle prices.
The packer/feeder profit margins spread, historically large a month ago, has shrunk by 50% with gradually improving live cattle prices.
The combination of shrinking packer profits and smaller feedyard losses over the past six weeks has reduced the packer/feeder margin spread by 27%, according to the Sterling Beef Profit Tracker.
Sharply higher beef cutout values produced windfall profits for beef packers last week while cattle feeders saw closeouts with average losses about steady, according to the Sterling Beef Profit Tracker.
This year, U.S. pork exports to Chile have rebounded, increasing 30% through April year over year, reports the U.S. Meat Export Federation, fueled by retail and foodservice features.
The National Pork Board recently announced a new five-year effort to address consumer questions related to the pork industry and strengthen consumers’ confidence in choosing pork for their plate.