Profit Tracker: Modest Profits Continue For Cattle And Hogs

Profit tracker
Profit tracker
(FJ)

Cattle and hog finishing margins are both positive for the fifth consecutive week.

Cattle feeding margins posted average profits of $41 per head last week, $95 per head less than the previous week. Cash prices for fed cattle declined nearly $3 per cwt. on average to $104 per cwt., but margins held positive due to significantly lower feeder cattle prices calculated in closeouts, according to the Sterling Beef Profit Tracker.

Cattle marketed last week were purchased last spring at prices diminished significantly by the onset of the coronavirus pandemic. Feeder steer prices factored into last week’s Profit Tracker were $129.31 per cwt., which is $12.30 per cwt. lower than last year. Those lower feeder cattle prices produced an average breakeven of $101.50 for cattle marketed last week. The previous week’s breakeven price was  $97 per cwt., and a year ago the breakeven was $112 per cwt. A year ago cattle feeders lost an average of $25 per head.

Packer margins declined $10 per head last week, though profits remain at $257 per head. Last week’s beef cutout price averaged $206 per cwt., a decline of $3 per cwt.

Feedyard margins reported by the Sterling Profit Tracker, Sterling Marketing, Vale, Ore., are calculated on a cash basis only with no adjustment for risk management practices.

(Note: The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs.)

Sterling Marketing projects 2020 feedyard margins to average $10 profit per head, while annual packer profits are projected at $314 per head. Cash cow-calf margins for 2020 are projected at $57 per calf.

Farrow-to-finish pork producers have seen their margins improve this fall with rising lean carcass prices.  Last week saw average closeouts post $20 per head profits, about steady with the previous week, and $2 per head less than a month ago.

Lean hog carcass prices traded at $66.21 per cwt., $0.08 per cwt. less than the previous week. Lean carcass prices are $0.28 per cwt. higher than a month ago, and $9.27 higher than the same week a year ago. A year ago pork producers lost an average of $16 per head.

Pork packers saw average profits of $59 per head last week, about steady with the previous week.

Sterling Marketing projects 2020 annual per head losses for pork producers at $18 per head, while projected packer profits are $59 per head.

(Editor’s note: Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

Related stories:

Cash Cattle Lower, COF Inventory Higher

 

Latest News

When Stress Goes Beyond Normal 

It started with a broken baler. The farmer panicked. He had recently lost his brother to cancer and his father to old age. Not to mention he had 2,500 acres to farm, 250 beef cows to attend to and his crop just froze. 

White House Drought Relief Working Group to Address Western Water Crisis

Interagency effort will coordinate resources across the federal government to bring immediate relief to irrigators, Tribes, and western communities.

Cargill, Sysco Partner On Sustainable Grazing Project

Sysco and Cargill will partner with the National Fish and Wildlife Foundation (NFWF) to help ranchers tackle the impacts of climate change and improve grasslands and wildlife habitat through cattle grazing.

Switzer Ranch Receives Nebraska Leopold Conservation Award

Bruce and Sue Ann Switzer along with their children, Sarah Sortum and Adam Switzer, own and operate Switzer Ranch, recipient of the 2021 Nebraska Leopold Conservation Award®.

Profit Tracker: Spring Rally For Cattle And Hogs

Cattle and hog feeding operations are experiencing the highest market prices since before the pandemic began more than a year ago. Hog margins were positive for the 11th consecutive week.

Tyson Announces Support for U.S. CattleTrace

Beef industry efforts to develop a voluntary animal traceability system gained significant traction today as Tyson Fresh Meats becomes the first beef processor to invest in membership to U.S. CattleTrace.