Negotiated cash cattle increased $2.48 per cwt. the week ending Oct. 25 while feedlot margins dropped $32 per head to an industry average of $190.18 per head, according to the Sterling Beef Profit Tracker. Meanwhile, beef packers saw profits increase $37 per head to a gain of $15.54 per head. That puts the packer/feeder margin spread at $175 per head in favor of the feeder.
Cash cattle averaged $190.04 per cwt. the week ending Oct. 25, while Comprehensive Beef Cutout prices posted a $4.43 per cwt. gain to close at $315.41 per cwt.
Cattle marketed last week carried a total feed cost of $466.90 per head, about $14 more than feed costs for cattle sold the same week a year ago.
Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $254.17 per cwt., or $5 more per cwt. less than a month ago.
The estimated total cost for finishing a steer last week was $2,702 per head, up from last year’s estimate of $2,514 per head.
Fed cattle slaughter totaled an estimated 500,269 up 10,280 head from the same week last year. Packing plant capacity utilization was estimated at 85.8% compared to 83.7% last year.
View the full Sterling Beef Profit Tracker for the week ending Oct. 25.
Farrow-to-finish hog producers found positive margins of $9.37 per head last week, up $5.12 from the previous week, according to the Sterling Pork Profit Tracker. A year ago, those margins were at -$25.44. Lean carcass prices averaged $78.68 per cwt., up $2 from the previous week.
Hogs placed for finishing last week had a breakeven at $69.49 per head.
Pork packers saw average profits of $29 per head, up $1.65 from the previous week. Last year pork packer margins were $19.66. Hog slaughter was estimated at 2.531 million head, down 18,132 head from the same week last year.
Pork packer capacity utilization was estimated at 96.6% compared to 97.0% last year.
View the full Sterling Pork Profit Tracker for the week ending Oct. 25.
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.)
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