Last week’s jump in the 5-Area Direct steer price to $239.81, and $5/cwt. higher than a week earlier, pushed feeding margins to $557.54/head from $490.04/head the prior week.
Feeder cattle prices $386.34/cwt. for placements last week and about the same as for cattle that were marketed last week. However, the Comprehensive Cutout was about steady with the prior week leading to a sharp drop in Sterling’s estimated packer margins with the week’s average at -$208.98/head. Fed cattle plant capacity utilization averaged 78.4%.
View the full Sterling Beef Profit Tracker for the week ending Oct. 18.
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.)
