Both packer and feedlot margins continued under pressure last week. While the 5-Area Choice steer price was unchanged from the prior week, the Comprehensive Beef Cutout gained $11.50/cwt., which lent greater support to the packer margin with Sterling’s estimated average for the week at -$121/head against -$360/head the prior week.
Feedlots, though still well into black ink saw margins drop $60/head for a Sterling estimated average for the week of $231/head.
Plant capacity utilization improved as the industry moved out of the holiday shortened weeks, but at 76% for fed cattle and 66% for cows, it still is well below where it needs to be.
View the full Sterling Beef Profit Tracker for the week ending Jan. 10.
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.)
