The week ending August 1 was a week of records for the U.S. beef industry and the entire supply chain felt the impact, beginning with the price of cattle. Packers paid a record-high price for Choice steers — $244.41/cwt. — $48/cwt. higher than a year ago.
Against a Comprehensive Cutout Value that averaged $364.54/cwt. and nearly $5/cwt. lower than the prior week, Sterling’s calculated packer margin for the week averaged — $316.28/head, which was the largest weekly loss on record.
Capacity has and will continue to be the issue. Sterling Marketing began estimating packer margins and capacity in January 1988. Meanwhile, cattle feeders realized an estimated margin of $788/head and paid a record price $348.49/cwt. for 750 to 800 lb. feeder steers leaving the breakeven price for those cattle when they are finished at $228.53/cwt., also record high.
View the full Sterling Beef Profit Tracker for the week ending August 1.
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.)
