The 5-Area Direct Steer Price last week was about unchanged from the prior week averaging $244.85/cwt. for the week. However, with the breakeven for finished cattle averaging $239.65/cwt. compared to $242.18/cwt. the prior week, feeding margins were notably improved with the Sterling average of $118.64/head for the week against $88.66/head a week earlier.
At the same time, break-evens for cattle placed on feed last week will reach $250/cwt. Sterling’s packer margin estimate for last week fell sharply to average -$170.95/head. The Composite Beef Cutout averaged $389.25/cwt. and just under the prior week’s average of $390.15/cwt.
Capacity utilization for cow plants remains a critical concern averaging around 57%.
View the full Sterling Beef Profit Tracker for the week ending April 18.
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.)
