As is typically the case, commodity markets were slow during the week of Christmas. The Comprehensive Beef Cutout stayed the course set at the beginning of the month continuing to weaken to a weekly average of $354.52/cwt. and down from $357.82 a week earlier, and 371.92 /cwt. a month ago. The same week a year ago this value, which is a weighted average of Prime, Choice, Select, Branded, and Ungraded beef cuts averaged $316.19/cwt.
Packer margins fell further into the red with a lower cutout and a higher slaughter steer price with Sterling’s estimated average for last week at -$220.92/head compared to -$186.72/head.
Capacity utilization at fed cattle plants averaged 58.9% during the holiday-shortened week while cow plants operated at 48.3% of capacity.
Feedlots gained margin against a marginally higher breakeven with Sterling estimate at $237.80/head compared to $304.26/head the prior week.
View the full Sterling Beef Profit Tracker for the week ending Dec. 27.
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.)
