Profit Tracker
Weather continues disrupting shipping and harvest operations for livestock producers across the Corn Belt and Central Plains as both cattle and hog feeding losses continue to mount.
Winter weather dominated livestock markets the second full week of the year with slowing harvest and transportation. Cattle and hog prices were steady and margins improved modestly, yet losses remain significant.
Santa failed to deliver any margin improvements for cattle and hog producers while beef and pork packers operated in the black.
Cattle feeders and beef packers both printed closeouts with red ink last week, slight advantage packers. Pork producers also operated underwater but pork packers saw improving margins.
Cattle feeding margins fell deeper into the red last week while packer margins improved modestly. Pork producer margins erode further underwater.
Cash cattle traders were jolted by a steep price decline last week that erased much of the profit on cattle sent to market. Pork margins remain red.
Cattle feeding margins decline even as fed steers trade steady to higher for the week. Packer margins erode on weaker wholesale beef prices. Pork producer margins improve but remain underwater.
Projected breakevens for cattle placed on feed have declined $10 per cwt. over the past month. Pork producer margins are declining even with feed costs 23% lower than last year.
Cattle feeding margins saw a $30 per head improvement with higher cash prices and lower feed costs. Pork producer margins decline as prices soften.
Cattle feeding margins improved modestly last week after cash bids rallied nearly $2 higher. Pork producer margins remain in red.
Cattle feeding margins remain solidly profitable and supported by significant declines in feed costs. Pork producer margins erode.
Reducing slaughter and putting less beef tonnage on the market has helped beef packers regain some profit margin. Pork producer margins decline.
After six weeks running in the red, beef packers jumped back into positive margins after last week’s wholesale beef rally. Pork producers remain profitable.
The spread between cattle feeding margins and packer margins narrowed modestly last week. Pork producers remain profitable.
Cattle feeders continue to gain market leverage as packers see pressure from declining wholesale beef prices. Pork producer margins remain solidly in the black.
Packers have reduced harvest and employed other tactics in an effort to regain positive margins. Pork producer margins took another step higher as lean carcass prices advance.
The spread between cattle feeding margins and beef packer margins has now reached $500 per head as packing losses increase. Pork producer margins are the highest of the year.
There’s a $400 spread between cattle feeding margins and packer margins – now in the cowboy’s favor. Cattle harvest is lower as packers reduce hours, a signal their margins are in the red.
A year after the pandemic disrupted the hog industry and left producers facing financial ruin, operators are now experiencing a once-in-a-lifetime rally as farrow-to-finish margins climbed another $7 per head last week.
Farrow-to-finish pork producers earned $28 profit per hog last week, a $3 per head decline from the previous week. A month ago farrow-to-finish pork producers showed a loss of about $2 per head.
Cattle feeding margins declined despite cash prices that were steady across all regions. Packer margins improved with higher beef cutout prices.
Profit margins for cattle sold for slaughter last week declined $55 per head, according to the Sterling Profit Tracker.
Cash cattle prices $3 to $4 lower means cattle feeding margins declined another $33 per head last week.
Cattle feeding margins are rapidly declining as cash cattle prices retreat from spring highs
A $3 per cwt retreat in cash cattle prices pushed cattle feeding margins $67 per head lower.
Cattle feeding margins improved $57 per head last week, due primarily to lower prices paid for incoming feeder cattle against last week’s marketings.
Cattle feeding margins declined by $80 per head last week as cash prices slumped $1 to $2 per cwt.
Cattle feeding margins improved $43 per head last week as cash prices gained nearly $2 per cwt.
Cattle feeding margins improved $16 per head last week as cash prices inched higher less than $1 per cwt.
Average feedyard closeouts improved last week as cash prices inched modestly higher.