Last week’s $2/cwt. gain in the average 5-Area Direct Steer Price pushed the week’s average to $224.18/cwt. and added $40/head to feedlot margins. At the same time, feeder cattle prices gained some support with the week’s average for 750- to 850-lb. steers posting a nearly $7/cwt. gain to average $350.96. Of course, breakeven prices for those cattle were pushed higher to average $235 when these cattle hit the show list.
The Comprehensive Beef Cutout was nearly unchanged from the prior week and together with the gain in Choice steer prices took about $1 off the prior week’s packer margin leaving Sterling’s estimate of the week’s average at $155/head.
View the full Sterling Beef Profit Tracker for the week ending Oct. 17.
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.)
