Source: Rita Jane Gabbett, MEATINGPLACE, 3/9/15


U.S. spot chicken and beef margins bounced back while pork margins deteriorated, according to the protein analysts at BB&T Capital Markets.

Chicken
In an analysis of protein markets, the analysts calculated U.S spot chicken margins in the week ended Feb. 28 averaged 17.9 cents per pound, compared to 17.6 cents per pound the prior week and 4.9 cents per pound at this time last year.

The sequential move up was due to stable pricing and slightly lower feed costs. Breast meat prices have been declining slowly during the past several weeks but may have put in a bottom, the analysts wrote, noting the last week of February has typically been when breast meat prices tend to start moving higher seasonally.

Beef
U.S. beef packer margins made meaningful improvements last week, but they remain challenged overall.
Average U.S. beef packer margins improved and were back close to breakeven by Friday, Feb. 27. Such levels compare to a loss of $100+ per head during the week prior and losses of $95 per head at this time last year. Beef cutout prices improved last week amid stable live cattle costs, as packers reined in slaughter even further, the analysts reported.

Pork
U.S. pork packer margins deteriorated in the week, averaging slightly in the red.  This was down from profitability of around $7 per head during the week prior. Margins were over $12 per head at this time last year. Hog prices rose in the week, bringing more expensive animals into plants and impacting packers’ cutout, the analysts noted.

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