The first week following Labor Day, the market remains intact with strong demand supporting prices. Beef packer margins showed significant improvement for the week ending Sept. 6 with the Comprehensive Cutout gaining $5/cwt. and reaching a new record high to average $409.20/cwt for the week.
Judging that cutout against cattle priced at $244.44/cwt. the prior week left margins averaging an estimated $38.05/head. Feeding margins also gained last week even though last week’s average 5-Area Direct Steers averaged $242.62 against an estimated breakeven price of $192.35.
View the full Sterling Beef Profit Tracker for the week ending Sept. 6.
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.)
