Cash cattle traded at steady money last week, $111 per cwt., but feeding margins declined $17 per head, according to the Sterling Beef Profit Tracker. Feedyard losses totaled $66 per head, compared to losses of $49 per head the week before. Packer margins held steady at $174 per head.
The beef cutout declined $0.21 per cwt., closing at $203.14. The cost of finishing a steer last week was calculated at $1,584, which is $91 higher than the $1,493 a year ago. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore. A year ago cattle feeders were losing $11 per head. Feeder cattle represent 73% of the cost of finishing a steer compared with 73% a year ago.
Farrow-to-finish pork producers saw their margins improve $11 per head to about break even. Lean carcass prices traded at $64.84 per cwt., $6.05 per cwt. higher than the previous week, and $26.05 higher than a month ago. A year ago pork producers lost an average of $19 per head. Pork packer margins averaged a profit of $23 per head last week.
Cash prices for fed cattle are $3 per cwt. higher than the same week last year. Lean hog prices are about $15 per cwt. higher than last year.
Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2018 will average $146 per cow. That would be $12 per head less than the estimated average profit of $158 for 2017. Estimated average cow-calf margins were $173 in 2016, and $438 per cow in 2015.
For feedyards, Nalivka projects an average profit of $31 per head in 2018, which would be $150 less than the average of $181 per head in 2017. Nalivka expects packer margins to average about $159 per head in 2018, up from $120 in 2017.
For farrow-to-finish pork producers, Nalivka projects 2018 profit margins will average a loss of $5 per head in 2018, compared to profits of $21 in 2017. Pork packers are projected to earn $21 per head in 2018, down from $25 profit per head in 2017.
