Packer losses last week deepened as slaughter cattle priced two weeks prior for last week’s kill gained significantly against the Comprehensive Cutout with Sterling’s estimate for last week’s margin at -$359.51/head.
Feedlot margins last week were also off from the prior week averaging $298/head. The 5-Area Direct Steer Price averaged $246.62/cwt and about $1.50 higher than the previous week.
Plant capacity utilization continues to be a critical issue and will become an increasingly critical issue with both feedlots and packers in the southern Plains with the border closure. Lubbock Feeders announced they are closing this week.
View the full Sterling Beef Profit Tracker for the week ending Feb. 21.
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.)
