Last week’s gain in 5-Area Direct Steer Price to a weekly average of $222.82/cwt. against $219.04/cwt. a week earlier, led to some improvement in feedlot margins with Sterling’s estimate for last week at -$307.19/head compared to -$328.75 the prior week. Feeder cattle prices gained about $7/cwt. last week from the prior week.
Last week’s average Comprehensive Beef Cutout held steady with the prior week’ average, which together with a $2/head gain in the drop credit lent support to packer margins. Sterling estimated last week’s average packer margin at $177.16/head compared to $170.76/head the prior week. Slaughter was down 21,000 head with the Labor Day holiday.
View the full Sterling Beef Profit Tracker for the week ending Sept. 12.
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.)
