US Hog Producers See Margins Plummet Despite Positive Territory

The Sterling Pork Profit Tracker has reported that farrow-to-finish margins for hog producers in the US have continued to decline, despite remaining in positive territory. The estimated average margin for last week was $46.88/head, down from $50.41/head the previous week and a significant drop from $82.08/head for the same period last year.

The W. Cornbelt Lean Carcass Value has also fallen to $90.26/cwt. for last week's average, compared to $107.75/cwt. for the same time last year. Meanwhile, corn and meal prices are increasing, pushing the breakeven price higher for hogs placed last week at $74.88/cwt., up from $67.93/cwt. for those marketed last week.

Packer margins remain barely in the black, with an estimated average of $3.90/head for last week, according to Sterling Marketing's Profit Tracker.