Beef packers continue to deal with competition for tight cattle numbers. Though there will be some relief following Tyson’s Lexington plant closure, capacity utilization remains a critical issue. Sterling analysis indicates plant utilization averaged 78% in fed cattle plants last week and 63% in cow plants.
Packer margins according to Sterling calculations averaged -$216/head last week while feedlot margins averaged $214/head for the week. 5-Area Direct Choice steer prices averaged $232.40/cwt. for the week against an average Comprehensive Cutout Value of $360.93/cwt., which was up from $353.70/cwt. the prior week.
View the full Sterling Beef Profit Tracker for the week ending Jan. 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.)
