Profit Tracker: Cattle Feeding Margins Improve
Average cattle feeding margins exceeded $206 per head the final week in March, according to the Sterling Beef Profit Tracker. That average was $28 per head higher than the previous week, and $56 per head higher than a year ago. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Inc., Vale, Oregon.
Estimated beef packer margins for the final week in March were $285 per head, up $12 per head from the previous week, and down $203 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 $140 per cwt., about $1 higher than the previous week. Meanwhile, the choice beef cutout price dropped $2.40 per cwt to an average of $266.06 per cwt.
Steer and heifer slaughter the week ending April 2 was 639,000 head, for a fed cattle plant capacity utilization of 85%. A year ago slaughter was 636,158 head for a capacity utilization of 84.6%.
Cow slaughter last week was 139,302 head, or 620 head higher 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 $72 per head, $8 lower than the previous week.
Lean carcass prices were $108.29 per cwt. last week, $3.70 lower than the previous week. Lean hogs traded at $75.02 per cwt. the same week a year ago.
Pork packers saw average losses of $15 per head, an improvement of $4 per head from the previous week. Hog slaughter was 2.442 million head last week, up 23,000 head from the previous week for a slaughter capacity utilization of 88.7%.
(Editor’s note: Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)
