The 5-Area Direct price averaged $231.73/cwt. against the prior week average of $229.39/cwt., which in turn left average feeding margins at $293/head and up $55/cwt. higher than the prior week.
Sterling’s estimated breakeven for cattle placed on feed last week was $231/cwt. compared to $211/cwt. for cattle marketed last week.
While bids for slaughter steers was higher last week, the Comprehensive Cutout Value was down about $12/cwt. to average $342.15/cwt. for the week leaving packers to lose an estimated $360/head.
View the full Sterling Beef Profit Tracker for the week ending Jan. 3.
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.)
