Though still well into the red ink at -$182.68/head, beef packer margins were improved last week with the Comprehensive Cutout Value gaining $7.31/cwt. This margin was against a cattle cost of $242.57/cwt. for the 5-Area Steer Price the prior week when those cattle were bought by the packer.
Last week’s Choice steer price $240.02/cwt. led to a reduced feedlot margins with the Sterling estimate at $140.16/head and down from $196.53/head the prior week.
View the full Sterling Beef Profit Tracker for the week ending March 7.
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.)
