The impact of higher Choice steer prices against only minor upper movement in the Comprehensive Beef cutout definitely made an impact on beef industry margins last week.
Sterling’s estimate of beef packer margins averaged -$246.42/head against -$123.35/head the prior week while feedlot margins averaged $186.70/head and down only about $7/head from the prior week as estimated break-evens were about $.50/cwt higher with a $2/cwt higher feeder cattle cost.
View the full Sterling Beef Profit Tracker for the week ending May 9.
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.)
