Negotiated cash cattle increased an average of $0.13 per cwt. the week ending Oct. 12 and profit margins increased $113 per head to an estimated industry average of $202.93 per head, according to the Sterling Beef Profit Tracker. Meanwhile, beef packer realized a small margin gain of $26 per head from the prior week, but still having a total loss of $86 per head.
Cash cattle averaged $187.29 per cwt. the week ending Oct. 12, while Comprehensive Beef Cutout prices posted a $4 per cwt. gain to close at $304.11 per cwt.
Cattle marketed last week carried a total feed cost of $450.66 per head, about $12.50 less than feed costs for cattle sold the same week a year ago. The estimated total cost for finishing a steer last week was $2,671 per head, up from last year’s estimate of $2,645 per head.
Finished cattle marketed last week were estimated to be placed on feed in early April at a cost of $240 per cwt., thus leaving the estimated breakeven for those cattle at about $173 per cwt. Last week, feeder steers weighing 750-800 lb. had a first cost into the feedlot of $254 per cwt. with a breakeven of $184 per cwt.
Fed cattle slaughter totaled an estimated 474,660 down 1,708 head from the same week last year. Packing plant capacity utilization was estimated at 81.1% compared to 81.3% last year.
View the full Sterling Beef Profit Tracker for the week ending Oct.12.
Farrow-to-finish hog producers found positive margins of $9.69 per head last week, down $2.53 from the previous week, according to the Sterling Pork Profit Tracker. A year ago, those margins were at -$14.93. Lean carcass prices averaged $77.69 per cwt., down $1.45 from the previous week.
Hogs placed for finishing last week had a breakeven at $77.21 per head.
Pork packers saw average profits of $25 per head, up $2.68 from the previous week. Last year pork packer margins were $25.30. Hog slaughter was estimated at 2.519 million head, down 1,950 head from the same week last year.
Pork packer capacity utilization was estimated at 96.1% compared to 96.9% last year and continues to support margins.
View the full Sterling Pork Profit Tracker for the week ending Oct. 12.
The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Inc., 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.)
Your Next Read: We Need to Foster Alignment Within All Segments of the U.S. Pork Industry
