Higher Choice steer prices $240.73/cwt. compared to $239.47/cwt. the prior week, left feedlot margins with an estimated margin of $734/head. However, the Comprehensive Cutout lost $7.50/cwt. to average $369.20/cwt.
As no surprise, packer margins fell deep into red last week to average – $257/head. In addition to market prices, the other issue for packers is capacity. Capacity utilization in fed cattle plants last week averaged 77%. The problem will only worsen as cattle numbers tighten further. Cow plant utilization averaged 59% last week compared to 70% a year ago.
View the full Sterling Beef Profit Tracker for the week ending July 26.
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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