Union workers at the JBS Greeley, Colo., plant went on strike last Monday, slaughter for the week was the lowest on record or close to it, and Sterling’s calculation of packer margins for the week was $107/head. Are all three related? Perhaps. One thing is certain – the strike led to reduced slaughter capacity, which may not be permanent but at any rate, utilization was bumped up to 78%, which is good.
Feedlots continued to face red ink last week. We can debate whether that is the result of the 5-Area Direct Choice steer prices averaging $235.25/cwt. for the week or break-evens hovering in the low $240 range.
View the full Sterling Beef Profit Tracker for the week ending March 21.
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.)
