Last week’s wholesale beef market continued to soften. The Comprehensive Beef Cutout was down $10/cwt. from the prior week subsequently once again pressuring packer margins.
Sterling’s estimate for packer margins last week was -$126.50/head, down from -$95.51 from a week earlier. The 5-Area Direct Steer Price averaged $229.25/cwt. compared to $232.35 a week earlier leaving estimated average feedlot margins at $508/head.
Capacity utilization in both fed beef and cow plants was about unchanged from the prior week — 77% and 63%, respectively. Beef production was not reported due to the government shutdown.
View the full Sterling Beef Profit Tracker for the week ending Oct. 4.
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.)
