Source: Chris Scott, MEATINGPLACE, 12/22/15


U.S. beef and pork packer margins rose last week while chicken margins remained flat, according to the latest report from BB&T Capital Markets.

Analyst Brett Hundley said the average U.S. beef packer margin was $10 per head, compared with $3 per head in the previous week. Margins were negative by $115 per head in the same period one year ago. Beef cutout prices were lower last week, although live cattle costs declined at a greater pace, Hundley reported.

Meanwhile, the average U.S. pork packer margins were up slightly last week at $23 per head, versus $22 per head in the previous week. Last year, margins were about $4 per head, Hundley reported. Pork cutout prices were relatively unchanged from week to week while pig costs fell slightly, he added.

Finally, spot chicken margins were unchanged last week at about 7 cents per pound, about half the margin in the corresponding week one year ago. Feed costs declined last week, with breast meat prices holding flat, but still 17 percent lower than one year ago. Leg quarter prices were flat to down compared with the previous week, but they are 49 percent lower that last year.

Hundley notes that the chicken cutout is down 12 percent in 2015 versus 2014 levels.

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