Feedlot margins weakened somewhat last week as the breakeven for those cattle increased about $3.50/cwt. from cattle marketed the prior week. The 5-Area Direct Choice steer price averaged $256.09/cwt. against $256.52/cwt. the prior week.
Packer margins were pushed further into the red with Sterling’s calculated average at -$254.49/head. JBS announced the closure of its plant in Souderton, Pa. Given the significant losses in meat packing, the industry will continue to adjust capacity and look for improvements in efficiency.
View the full Sterling Beef Profit Tracker for the week ending June 13.
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.)
