Packer margins continue to improve. Certainly reducing total plant capacity has had an impact. While 5-Area Direct Steer prices averaged $219.23/cwt. last week against, $225.01/cwt. the prior week, the two-week prior price was the cattle slaughtered last week that generated Sterling’s estimated average packer margins at $144.24/head last week compared to $37.93/head a week earlier.
The Comprehensive Beef Cutout was also higher last week averaging $384.01/cwt. against $379.03/cwt. the prior week. Feeding margins continued to fall into red ink with the Sterling estimate at -$235.22/head for last week’s average.
View the full Sterling Beef Profit Tracker for the week ending Aug. 29.
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.)
