Profit Tracker: Cattle/Hog Feeding Margins Increase
Average cattle feeding margins exceeded $266 per head the final week in February, according to the Sterling Beef Profit Tracker. That average was $84 per head higher than the previous week, and $235 per head higher than a year ago.
Estimated beef packer margins for the final week in February were $265 per head, down $97 per head from the previous week, and down $111 from the same week a year ago. The profit tracker is calculated by Sterling Marketing, Vale, Oregon.
Last week’s calculations were based on 5-area fed cattle prices of $143.43 per cwt., about $1 higher than the previous week. Meanwhile, the choice beef cutout price dropped $8.19 per cwt to an average of $267.94 per cwt.
Steer and heifer slaughter the weed ending Feb. 25 was 498,190 head, for a fed cattle plant capacity utilization of 86.6%. A year ago slaughter was 521,688 head for a capacity utilization of 90.7%.
Cow slaughter last week was 141,046 head, or 6,138 head higher (4.4%) than the same week a year ago.
(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.)
Farrow-to-finish pork producers saw profits of $62.50 per head, $2.52 higher than the previous week.
Lean carcass prices were $99.21 per cwt. last week, $2.29 higher than the previous week. Lean hogs traded at $78.90 per cwt. the same week a year ago.
Pork packers saw average profits of $17.75 per head, down $1.40 per head from the previous week.
(Editor’s note: Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)
