Beef packers fared much better last week in the face a higher Beef Cutout which was up $3/cwt. from the prior week, and a lower cost of cattle paid two weeks prior for slaughter last week. The 5-Area Direct Choice steer price 2 weeks prior for slaughter last week averaged $246.19/cwt. and advanced to $255.13/cwt. last week.
Sterling Packer Margins averaged -$123.15/head against -$188.23/head the previous week. Another contributing factor was the sharply higher drop credit averaging $219.43/head and the highest since the week of Nov. 19, 2022.
Feedlot margins also improved sharply last week averaging $193.33/head compared to -$2.50/head a week earlier.
View the full Sterling Beef Profit Tracker for the week ending May 2.
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.)
