Though still showing red ink, packer margins were significantly improved last week with Sterling estimates at -$44.53/head compared to - $170.25/head the prior week.
The Comprehensive Beef Cutout averaged $377.86/cwt. for the week compared to $376.26/cwt. a week earlier while the week’s average for 5-Area Direct Steers was $228.42/cwt. and down $2/cwt. from the prior week.
Sterling’s estimate for last week’s feedlot margins was $413/head. Last week’s break-even for closeouts was lower as feeder prices when those cattle were placed in April was lower.
View the full Sterling Beef Profit Tracker for the week ending Nov. 8.
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.)
