Beef packer margins sank further into the red as the cattle cost continues to outpace wholesale beef prices albeit prices that are record high.
At the same time, feedlots continue to benefit from high finished cattle prices against breakeven prices in the $170/cwt range supported by feeder prices when these cattle were placed on feed and well below current prices as well as significantly heavier finish weights.
Breakeven prices for current placements are hovering around $200/cwt driven by record feeder cattle prices.
View the full Sterling Beef Profit Tracker for the week ending April 5.
The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.
(Note: The Sterling Beef Profit Tracker calculates an average beef cutout value for the week in its estimates for feedyard and packer margins. Other prices in the weekly Profit Tracker also are calculated weekly averages. Feedyard margins are calculated on a cash basis only with no adjustment for risk management practices. The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs. Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)
