Cattle feeding margins continued their sharp upward momentum as breakeven prices for current closeouts hover in the $170 range against a negotiated cash steer price averaging $212/cwt for the week ending March 22. The margin estimate for the week was $612/hd. compared to $43/hd. a year ago. The current breakeven price in the $170s/cwt compares to $200/cwt for currently placed cattle. Last week’s feeder cattle price averaged $287.33/cwt compared to $240.39/cwt for feeder steers when last week’s marketed cattle were placed on feed in August 2024.
Packer margins remain well in the red as fed cattle prices remain strong as the beef composite cutout value gains additional strength to averaging nearly $327/cwt. compared to $316/cwt a year earlier.
View the full Sterling Beef Profit Tracker for the week ending March 22.
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.)
