Pork packer margins hovered close to breakeven final week whereas farrow-to-finish producers continued to publish sturdy income, based on Sterling Advertising and marketing and USDA knowledge.
Margins Stay Tight
Sterling Advertising and marketing estimates packer margins at –$0.48 per head, enhancing barely from –$0.81 the prior week. In contrast, farrow-to-finish margins remained wholesome at $87.86 per head, properly above the estimated breakeven of $62.51/cwt.
Carcass Values and Cutout Developments
The Lean Carcass Worth averaged $110.98/cwt, down modestly from $111.71 every week earlier. The Pork Cutout additionally eased, averaging $116.37/cwt versus $116.97 beforehand. USDA knowledge reveals primal energy in bellies and hams serving to offset weaker motion in different cuts.
Slaughter and Manufacturing Enhance
Hog slaughter totaled 2.41 million head, edging greater from 2.35 million the prior week however beneath the 2.52 million head marketed throughout the identical week in 2024.
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Pork manufacturing surged to 507.7 million kilos, in contrast with 495.1 million the week earlier than and 492.3 million one month in the past.
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Plant capability utilization rose to 90.6%, up from 88.4% however nonetheless beneath final 12 months’s 94.8%.
Feed Prices Development Decrease
Feed prices for hogs positioned for ending averaged $61.42 per head, barely decrease than final week and sharply beneath the $75.35 recorded a 12 months in the past. For marketed hogs, feed prices had been $78.90 per head, in contrast with $75.27 the week prior and $82.06 one 12 months earlier.
Extra Market Indicators
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Drop credit score: $12.26 per head.
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Sow slaughter: 55,384 head, up from 54,050 the prior week.
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Exports & Outlook: USDA-ERS initiatives whole 2025 pork manufacturing at 28 billion kilos, with exports anticipated close to 6.95 billion kilos, barely decrease than final 12 months. Hog costs are forecast to common $67.40/cwt in 2025, peaking within the third quarter round $74/cwt.
Takeaway for Producers
The present panorama indicators tight packer margins however continued profitability for farrow-to-finish operations. Decrease feed prices are offering reduction, whilst slaughter ranges and plant utilization tick upward. Export efficiency and seasonal cutout dynamics can be essential to watch as fall approaches.
