A 1% week-over-week gain to the Composite Cutout against a .3% gain in the 5- Area Choice Steer Price (two weeks prior) gave a boost to beef packer margins last week. In addition, the drop credit gained .4% as well. Sterling’s calculated weekly average beef packer margin was - $191.89/head. The prior week, packers lost an average -$216.97/head.
Feedlots also saw improved margins last week with Sterling’s calculation at $295.48/head against $213.95 the prior week.
View the full Sterling Beef Profit Tracker for the week ending Jan. 24.
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.)
