Feedlot margins last week were notably higher even though slaughter steer prices were down from the prior week as the average breakeven was down an estimated $13/cwt.
The 5-Area Direct Steer price averaged $256.80/cwt., down from $260.64 a week earlier. Sterling’s estimate for average feeding margins was $355.52/head against $228.64/head the prior week.
Packer margins for the week improved from the prior week with the Composite Beef Cutout averaging $394.37/cwt. compared to $392.82/cwt. a week earlier. Sterling estimated fed plant utilization at 66% with reduced cattle numbers. Cow plant utilization was estimated at 49%. Capacity, capacity, capacity!
View the full Sterling Beef Profit Tracker for the week ending May 30.
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.)
