Beef industry margin dynamics changed markedly during the first week of November with Choice steer prices averaging $215.21 for the week compared to $223.65 the prior week, which in turn left unhedged feedlot margins averaging -$439.62/head and down $100/head from a week ago.
The breakeven for those calculated was estimated by Sterling at $247/cwt. while cattle placed last week had an estimated breakeven of $228/cwt. as feeder cattle prices were down nearly $17/cwt. from the prior week.
Sterling’s estimate for packer margins was $5.87/head last week.
View the full Sterling Beef Profit Tracker for the week ending Nov. 7.
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.)
