Feedlot margins gained more than $200/head to average $668.77/head last week according to Sterling’s estimate. The sharp increase was the result of a significant drop in feeder cattle prices when those cattle were placed on feed the week ending Nov. 28, 2025. The average cost of feeders that week was $314.58/cwt. compared to last week’s market at $385.24/cwt. Total feed cost that week was $409.60 compared to $400.46 last week according to Sterling estimates.
While feedlot margins gained considerably last week, packer margins fell further into the red averaging -$314.48/head for the week according to Sterling estimates while estimated plant utilization in fed cattle plants was 82.3% for the week. Sterling’s estimate for utilization in cow plants was 60.9%. As I have said for the last two years — “Too much capacity and the situation will be resolved further.”
View the full Sterling Beef Profit Tracker for the week ending June 27.
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.)
