The market continues to surprise many observers. Last week’s 5-Area Choice Steer prices advanced to average $263.42/cwt. leaving feedlot margins averaging $177.77/head for the week according to Sterling calculations against a higher breakeven resulting from a jump in feeder cattle prices when those cattle were placed.
Feeder cattle prices last week were off $13/cwt. and dropped break-evens for last week’s placements to $243.51/cwt. from $252.52/cwt. the previous week. It should be noted that there are break-evens bumping $260/cwt. out in the country.
Packer margins last week continued to erode and fall further into red ink with Sterling’s weekly average -$298.42/head compared against -$246.42/head the prior week.
View the full Sterling Beef Profit Tracker for the week ending May 16.
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.)
