Beef packer margins continued to improve last week and with Sterling estimating a margin of $161.36/head. It is important to note that Sterling uses the prior week’s priced cattle to be slaughtered in the current week, so cattle priced at $209.78/cwt. during the week of Nov. 29 were slaughtered during the week of Dec. 6. Therefore, the margin was better than would be expected with last week’s average 5-Area Direct steer price at $221.06/cwt. against the Comprehensive Cutout at $366.40/cwt. last week.
Plant capacity utilization was markedly improved last week over Thanksgiving week as would be expected and estimated by Sterling at 81.5% for fed cattle plants and 72% for cow plants. Feeding margins were also greatly improved last week and averaged $109.82/head.
View the full Sterling Beef Profit Tracker for the week ending Dec. 6.
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.)
