Average profit margins were mostly unchanged the week ending March 25. Cash cattle prices moved just 50 cents higher and feedyard margins were estimated at $195 per head, according to the Sterling Beef Profit Tracker. Packer margins declined $23 per head to an average of $34. Wholesale beef prices fell about $3 per cwt. for the week, closing at $279.78 per cwt.
Cattle feeders in the North have experienced dismal winter feeding conditions which slowed cattle performance and eroded margins. The South experienced much more favorable conditions.
Cattle sold last week carried a total feed cost of $603 per head, which is 30% higher than the $425 feed costs for cattle sold the same week a year ago.
Cattle marketed last week had a breakeven of $150.84 per cwt., while cattle placed on feed last week have a breakeven of $155.49 per cwt. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $185.69 per cwt., and feed costs of $549 per head. The feeder steer price is 18% higher than last year.
The estimated total cost for finishing a steer last week was $2,112 per head, up 16% from last year’s estimate of $1,771 per head.
Fed cattle slaughter totaled an estimated 488,280 head, about 4,000 head fewer than the previous week and 16,000 head fewer than the same week last year. Packing plant capacity utilization was estimated at 85.2% compared to 88.1% last year.
Farrow-to-finish hog producers saw losses of $11 per head last week, about $3 more than the previous week. Pork producers saw profits of $80 per head the same week a year ago. Lean carcass prices averaged $79.44 per cwt., down $1.37 with the previous week.
Pork packers found losses of about $5 per head, about $7 lower than the previous week. Last year pork packers saw losses of about $20 per head. Hog slaughter was estimated at 2.457 million head, down 35,000 head from the previous week but up 46,000 head from last year.
Pork packer capacity utilization was estimated at 90.6% compared to 87.2% last year.
(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.)
