Feeding margins improved last week with the 5–Area Direct Steer prices strengthened to average $259.70/cwt. for the week. Sterling estimated last week’s average feedlot margin at $453.78/head.
Excess packing capacity continues to be the pressing issue for packers with Sterling’s margin estimate at averaging -$253.51/head last week. Tight cattle numbers continues to be the pressing issue for packers. The closeout at Cargill’s Fort Morgan plant has reduced capacity enough to improve utilization with Sterling’s estimate bumping 81%.
View the full Sterling Beef Profit Tracker for the week ending June 20.
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.)
