The market was shaken by the talk of importing beef from Argentina to lower the cost to the consumer with the 5-Area Direct Choice Steer Price losing $2/cwt. and averaging $237.77/cwt. for the week.
Feedlot margins were estimated at $498.95/head and down from $557.54 the previous week but still well ahead of last year’s margin for the same week. Feeder cattle prices were also pressured in this week market volatility and speculation averaging $374.89/cwt. against $386.34/cwt. a week earlier.
Break-evens continue to hover in the mid-to-upper $240/cwt. range. Even though the Comprehensive Beef Cutout was $4/cwt. higher last week, packer margins were pressured further last week against the cost of the cattle and averaged -$253.28/head.
View the full Sterling Beef Profit Tracker for the week ending Oct. 25.
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.)
Your Next Read: Nalivka: The Key to Record Beef Prices
