Profit Tracker: Profits exceed $200
Cattle feeders turned a tidy profit last week despite a $2 retreat in cash cattle prices. It was the second
week closeouts were in the black after more than 17 consecutive months of losses, according to the
Feedyard profits were $226 per head, $75 better than the previous week as the cost of feeder cattle factored into those closeouts continued to decline. Average feeder cattle prices against last week's marketings were $147 per cwt., roughly $13 per cwt. or $100 per head below the previous week. USDA's 5-area cash price was $130.83 per cwt. And the breakeven price was calculated as $114.51, according to Sterling Marketing, Vale, Ore.
The total cost of finishing cattle last week was $1,594, compared to $1,702 the previous week and $2,227 last year.
Beef packer margins increased $78 per head, resulting in average profits of $126 on every animal processed. Packer margins are about $18 per head better than last month.
A month ago cattle feeders were losing $45 per head, while a year ago losses were pegged at $10 per head, according to Sterling Marketing. Feeder cattle represent 72% of the cost of finishing a steer, compared to 78% last year.
A month ago beef packers were earning $108 for every animal processed, while a year ago packers were earning $87, Sterling Marketing estimates.
producers earned $26 per hog last week, roughly $8 per hog better than the previous week, and much better than the $3 per head profits found a month ago.
Pork packers saw their margins decline $5 per head to a profit of $7 per head. Negotiated prices for lean hogs were $73.83 per cwt. last week, an increase of $2.99 per cwt. from the previous week. Cash prices for fed cattle are $29 per cwt. lower than last year, and negotiated hog prices are $5 per cwt. lower than last year.
Nalivka projects average cash profit margins for cow-calf producers at $177 per cow this year. Last year's estimated average cow-calf margins were $432 per cow.
