Packer margins fell deeper into the red last week as the Comprehensive Beef Cutout dropped $10.46/cwt. from the prior week to average $382.60 for the week while steers purchased two weeks prior to be slaughtered last week were priced at $236.72/cwt.
Sterling’s calculated packer margin for the week was - $95.51/head while the calculated average feeding margins for last week were $498.66/head compared to $623.82/head the prior week.
Plant utilization continues to be a challenge with sharply reduced cattle numbers. Fed plants averaged an estimated 76.7% last week while cow plants were at 62.7%.
View the full Sterling Beef Profit Tracker for the week ending Sept. 27.
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.)
