Profit Tracker: Feeding Margins Positive 11th Consecutive Week

Feeding margins remain positive
Feeding margins remain positive
(FJ)

Cattle feeding margins were positive for the 11th consecutive week and increased $20 per head to an average of $108, according to the Sterling Beef Profit Tracker. Negotiated cash cattle prices were about 50 cents per cwt. lower, but closeouts benefitted from a $2 per cwt. decline in the price of feeder cattle in the calculations.

The beef cutout price was $2 per cwt. lower than the previous week, and that cut packer margins by $23 per head, yet packer profits were still estimated at $490 per head.

A year ago cattle feeders were earning $81 per head and packers earned $257 per head. Feeder cattle represent 70% of the cost of finishing a steer compared with 73% a year ago.

Last week’s beef cutout averaged $238 per cwt. after seeing a $19 per cwt. rally in the previous two weeks to top at about $240 per cwt.

The cost of finishing a steer last week was calculated at $1,382, which is $153 per head lower than the $1,535 a year ago. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.

Farrow-to-finish pork producers saw their margins hold nearly steady at $6 per head profit, positive for the 11th consecutive week. Lean carcass prices traded at $58.56 per cwt., down $0.81 per cwt., $5.05 lower than a month ago. A year ago pork producers lost an average of $31 per head. Pork packer margins averaged a profit of $37 per head last week, up $2 from the previous week.

Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2020 will average $51 per cow. For feedyards, Nalivka projects an average profit of $10 per head in 2020, and packer margins are projected to average $281 per head.

For farrow-to-finish pork producers, Nalivka projects 2020 will produces losses of $18 per head. Pork packers are projected to earn $48 per head in 2020.

 

Latest News

Winter bale grazing
North Dakota To Consider Voluntary Checkoff

A North Dakota state representative has introduced legislation that would make the state's additional $1 beef checkoff voluntary. It would have no impact on the national Beef Checkoff.

12 min ago
.
Greg Hanes: What Have You Done for Me Lately?

In this commentary Greg Hanes, CEO of the Cattlemen's Beef Board, discusses the ways that Beef Checkoff dollars have been used in the past few months.

56 min ago
Cattle and hog feeding
Profit Tracker: Steady In The Red

Cattle and hog feeding margins were little changed last week, with both recording modest losses. Beef packers saw improved margins on significant gains in wholesale beef prices.

16 min ago
USMEF Audio: Taiwan Expands Market Access for U.S. Red Meat, but with Some Controversy

On Jan. 1, Taiwan implemented market access changes for imports of U.S. beef and pork. For beef, the 30-month cattle age limit was eliminated. For pork, it established maximum residue limits for ractopamine residues.

12 min ago
PepsiCo, Beyond Meat Partner to Develop New Plant-Based Snacks

PepsiCo Inc and Beyond Meat Inc said on Tuesday they would form a joint venture to develop and sell snacks and beverages made from plant-based protein.

2 hours ago
Data shows home cooking brings families together.
The Pandemic Upped My Cooking Game

New research shows I'm not the only one who upped my cooking game last year. A new study provides insight into which cooking and consumption habits are likely to continue into the new year and beyond. 

1 min ago