The red ink for beef packers only worsens with last week’s estimated average margin falling $168 into the red with the Negotiated Choice Steer price averaging $228/cwt and $2/cwt higher than the prior week. Last week’s packer margin is based on the cattle purchased two weeks ago at $226/cwt.
For the feedlot, estimated margins continue to thrive in black in with last week’s margin at $671/head and $30 per head higher than the prior week. The feedlot margin is calculated using last week’s steer price. Those cattle had an estimated breakeven price of $180/cwt. while the breakeven on cattle placed last week was $208/cwt.
View the full Sterling Beef Profit Tracker for the week ending May 17.
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.)
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