With break-evens for cattle on the current show lists and Choice steer prices under pressure, feedlot margins last week were down $125/head from the previous week and the lowest since the first week of March.
Estimated break-evens for Sterling feedlot margins for current marketings are ranging around $2.05 with feeder cattle at $2.94 /cwt. and corn at $4.60/bu. when these cattle were placed in April.
Packer margins gained somewhat with lower prices for purchased cattle (5-Area Choice Steer @ $230.45/cwt.) but remain well into the red at - $170.55/head.
View the full Sterling Beef Profit Tracker for the week ending Nov. 1,
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.)
