The margin landscape is ever-changing for packers with Sterling’s estimate showing significant improvement over the previous week in response to a sharply higher Comprehensive Cutout Value ($393.98/cwt.) against the cost of Choice steers ($242.45/cwt. for cattle purchased the week of Aug. 16).
This left the margin at -$73.48 /head compared to -$209.97/head the prior week.
Feedlot margins posted a gain last week ($710.88/head) marketing cattle at an average 5-Area Direct Choice Steer of $244.76/cwt. with a breakeven cost of $193.98/cwt.
View the full Sterling Beef Profit Tracker for the week ending August 23.
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.)
