Beef packers continued the downhill slide into deeper red ink last week with Sterling estimate at -$347.20/head compared to -$298.27/head a week earlier.
The Composite Cutout averaged $398.82/cwt for the week and close to the previous week. However, the average price of 5-Area Choice steers slaughtered and processed by plants last week averaged a record high $263/42/cwt.
One bright spot for the packers was the drop credit, which averaged $232.26/head and the highest since November 2021. Feedlot margins improved last week with Sterling’s estimated average for the week at $228.64/head.
View the full Sterling Beef Profit Tracker for the week ending May 23.
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.)
