Fed Cattle News

A Repeating Cycle: Sell Off, Recovery and Volatility in the Livestock Markets

Tue, 03 Jun 2025 19:08:49 GMT

Every cattle cycle looks a little bit different, but they all have peaks and troughs related to inventories and prices — and all the volatility that goes along with it, according to Lee Schulz, ag economist with Ever.Ag.

Schulz recently joined “AgriTalk” to discuss current trends in the cattle and hog markets with host Chip Flory. He says the supply side of the cattle equation is essentially unchanged.

“We’ve continued to put off expansion and to really continue to contract,” says Schulz, who thinks some supply reductions have been mitigated by higher carcass weights.

He also argues profitability drives, and the level of risk producers have faced over the last several years has pushed off that expansion.

“We’ve needed higher profitability levels to incentivize that expansion,” Schulz explains. “That is on the short-term horizon here. But if you would have asked me a couple of years ago what this expansion cycle would have looked like, I would have said it would have been a little bit smoother.”

One factor contributing to contraction in the market is that heifers are still worth more in the feedlot than on pasture. Record wholesale cattle values continue to incentivize the industry to market more beef.

“It’s really the short-term versus the long-term play here,” says Schulz, who is starting to see a transition.

Analyzing USDA’s long-term forecast from October 2024, Schulz notes the prediction for an increase in the beef cow herd Jan. 1, 2027.

“That would give us our highs in prices in 2026 with beef production finally increasing in 2028,” he says. “So far, that’s how it’s playing out. As we look at some of the fundamentals, obviously things could change. But that gives you a bit of a timeline for where things are at.”

With previous forecasts, there was the expectation to start expansion in 2024. The industry has continued to push that off.

“With cattle, you have the biologics of the industry,” Schulz says. “It takes a very long time to turn this ship. I think we can make some adjustments, but ultimately, once that expansion is dictated, it’s going to take a while.”

Demand has remained high in 2025 as consumers continue to eat more beef at higher prices. But is there a limit?

“As supplies are going to tighten, we’re going to eat less beef — but it’s at what price that beef is going to be at,” Schulz says. “Will you continue to see higher prices offset some of that reduction in quantity? So far, consumers have been willing and able to pay those higher prices. But that’s why we monitor things like consumer income and consumer sentiment. That’s going to drive beef demand here going forward.”

When it comes to the futures market and feeder cattle, Schulz thinks tight supplies are still in front of us and demand has to hold — so we may not have seen the highs yet. While he’s confident we’re not going at an increasing rate, he thinks the markets will plateau.

“As we get into summer and fall, that’s really going to dictate if have we put in the highs,” he says.

With cattle prices where they are, every animal in a feedlot, in transit or on pasture is at risk. Schulz recommends cattle producers go on the offense and look at ways to manage risk.

“You have to look at how do we manage the downside to this market potentially just due to the sheer cost of those placements,” he says. “Interest costs are three times as high as they used to be if you look back at the last decade. It’s not just feed costs either. It’s a lot of those costs we need to look at how to manage.”

Pork Markets Remain Steady
When it comes to the pork industry, Schulz sees the hog market dialed in. Supplies are similar to a year ago.

“When you look at it from a production standpoint, yes, slaughter’s down a little bit. But as we adjust for weights, we’re seeing a bit higher production,” Schulz explains. “Historically, we’re still pretty strong for demand, but I think we need to see further strength in demand if we continue to push these higher prices. The export situation remains critical for the hog market as we think about the ability to send our products to the highest valued market — and that continues to be a real crux for this industry.”

Listen to the entire conversation:

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Profit Tracker: Margins Remain Strong for Cattle and Hog Producers

Thu, 23 Jan 2025 21:56:26 GMT

Negotiated cash cattle remained steady the week ending Jan. 18 while feedlot margins decreased $55 per head to an industry average of $248.51 per head, according to the Sterling Beef Profit Tracker. Meanwhile, beef packers saw losses improve $11 per head to a loss of $71 per head. That puts the packer/feeder margin spread at $319 per head in favor of the feeder.

Cash cattle averaged $204.12 per cwt. the week ending Jan. 18, while Comprehensive Beef Cutout prices posted a $6.92 per cwt. increase to close at $330.37 per cwt.

Cattle marketed last week carried a total feed cost of $471.76 per head, about $77 more than feed costs for cattle sold the same week a year ago.

Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $273.16 per cwt., up $8 from a month ago.

The estimated total cost for finishing a steer last week was $2,856 per head, up from last year’s estimate of $2,368 per head.

Fed cattle slaughter totaled an estimated 494,460, up 4,283 head from the same week last year. Packing plant capacity utilization was estimated at 84.8%, up slightly from 84.1% last year.

View the full Sterling Beef Profit Tracker for the week ending Jan. 18.

Farrow-to-finish hog producers found positive margins of $28.74 per head last week, up $2.56 from the previous week, according to the Sterling Pork Profit Tracker. A year ago, those margins were at -$48.88. Lean carcass prices averaged $81.79 per cwt., up slightly from the previous week.

Hogs placed for finishing last week had a breakeven at $147.43 per head.

Pork packers saw average profits of $6.99 per head, up slightly from the previous week. Last year pork packer margins were $75. Hog slaughter was estimated at 2.569 million head, up 14,850 head from the same week last year.

Pork packer capacity utilization was estimated at 98.0% compared to 97.5% last year.

View the full Sterling Pork Profit Tracker for the week ending Jan. 18.

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.)

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Profit Tracker: Cattle, Hog Margins Worst Since Summer 2020

Fri, 27 Sep 2024 15:29:30 GMT

Closeouts fell another $10 deeper into the red for cattle feeders last week as losses totaled an average of $110 per head, according to the Sterling Beef Profit Tracker . Meanwhile, beef packers saw their margins improve $44 per head, pulling packer margins out of the red and $28 into the black. Cattle feeders have now seen a month’s worth of losses on closeouts.

For the week ending Dec. 16, cash cattle prices averaged $168.34 per cwt., which is roughly $1 lower than the previous week. Wholesale beef prices posted an average of $287.09 per cwt., roughly $0.75 per cwt. lower than the previous week. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $437 per head, down about $7 per head from the previous week, and about $79 less than feed costs for cattle sold the same week a month ago. Feed costs are 24% lower than a year ago.

Cattle marketed last week had a breakeven of $176.15 per cwt., while cattle placed on feed last week have a breakeven of $162.38 per cwt., which is about $4 per cwt. lower than a month ago. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $219.23 per cwt., or $6 per cwt. less than a month ago. The feeder steer price is 19% higher than last year.

The estimated total cost for finishing a steer last week was $2,466 per head, up 16% from last year’s estimate of $2,071 per head.

Fed cattle slaughter totaled an estimated 505,571 411,570, up 11,000 head from the previous week and 33,846 more than the same week last year. Packing plant capacity utilization was estimated at 86.3% compared to 82.5% last year.

Farrow-to-finish hog producers saw losses of $57 per head last week, about $6 more than losses the previous week. Pork producers saw losses of about $12 per head the same week a year ago. Lean carcass prices averaged $50.96 per cwt., or $3.88 per cwt. lower than the previous week and down $33.13 from last year (-40%).

Pork packers saw profits of about $62 per head, or $8 per head more than the previous week, and their best profit margins since October 2021. Last year pork packers saw losses of $1 per head. Hog slaughter was estimated at 2.689 million head, up 15,000 head from the previous week and up 109,000 head from last year.

Pork packer capacity utilization was estimated at 99.7% compared to 93.5% 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.)

Six Questions One Industry Veterinarian Says She Is Asked Most Often About HPAI

Thu, 26 Sep 2024 19:00:28 GMT

The emerging issue of Highly Pathogenic H5N1 Avian Influenza (HPAI) in the U.S. dairy industry changes on nearly a daily basis.

Novonesis (a merger of Chr. Hansen and Novozymes) hosted a webinar on the issue on Friday to update producers, veterinarians and other members of the agricultural community.

“It’s a rapidly evolving situation,” lead presenter, Kay Russo, DVM, Novonesis technical services manager for dairy and poultry, North America, stressed at the beginning of the program.

“I’m getting a lot of questions, and I’m sure everybody on this call has questions. Or if you’re a veterinarian, you’re receiving them,” she said. “Again, this is a rapidly evolving situation, and what may seem correct today may be different tomorrow.”

Here are the six questions Russo said she is most frequently asked, and what her answers to them are – for now. Russo’s answers have been lightly edited for clarity.

Question #1: Is HNAI spreading from cow to cow?

Answer: Initially the thought was that every one of these animals was exposed to the disease from a bird. But at this point, there is some consideration for the fact that this may be spreading laterally. How it’s spreading is still unclear. There is some postulation that the virus is being spread in the milking parlor. Could it potentially be a mechanical spread from cow to cow on the milkers’ hands, or perhaps (on) the milking machines? Is it possible in these parlors where the humidity is high, it’s a warm environment that we’re seeing some aerosolization of the virus, so I would say that’s possible too. But there’s more work that needs to be done. But for all intents and purposes at this time, I would suspect there is some lateral transmission.

Question #2: Why are calves, younger lactation cows and the feedlot cattle not getting sick?

Answer: Ultimately, I don’t know the answer to this. More work needs to be done. The question needs to be answered. Are they truly not getting infected with a virus? Are they resistant to it, perhaps? Or is it that they are getting infected and just not demonstrating the clinical signs? We milk a lot of these dairy cows three times a day, so there’s a lot of eyes on them. In some of these instances, with the calves or in the feedlot cattle, you’re not handling them as often. We need to rely on the science to answer these questions in order to provide guidelines. I keep saying this, and I will continue to say it, we do not know what we do not measure. And we cannot provide guidelines around what we do not know.

Question #3: Is this a risk to humans?

Answer: The short answer is that it can infect humans. I know that in New Mexico, they are offering free testing to individuals that are working regularly with these infected herds. And if they are symptomatic – we’re seeing conjunctivitis and high fevers in some of them –they are being distributed Tamiflu for their use and for their families. This is a rapidly evolving situation, and the people that are working on it are doing everything they can to ensure the safety of those individuals that are most at risk.

Question #4: Is milk safe?

Answer: The FDA has stated the pasteurization process should kill the virus, and we should not see it in any saleable milk.

Question #5: Will this be a market limiting disease outbreak?

Answer: This is the major concern here, folks. These are important markets for us in this country. At this point, this is something that is absolutely a consideration. The goal here is to keep the farms in business.

Question #6: Are dairy farms a risk to poultry operations?

Answer: We’ve seen two commercial layer operations, one in West Texas and one in Michigan, be positive for highly pathogenic avian influenza this week. I know that there’s considerable amounts of work behind the scenes to determine the origin of the virus that caused the outbreak in those situations. Ultimately, in this circumstance, it’s going to be important that the cattle folks and the poultry folks come to the same table and talk and manage through this. We want to be good neighbors. These are two major industries in our country, so it’s important that the dialogue is there and continues so that we can keep (everyone) safe.

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Profit Tracker: Cattle, Pork Margins Hold Steady

Tue, 11 Jun 2024 19:30:00 GMT

Negotiated cash cattle sold just 17 cents per cwt. lower last week and feedyard margins declined about $1 per head for an industry average profit of $326. Meanwhile, beef packers saw their margins improve $30 per head with losses of $55 the industry average, according to the Sterling Beef Profit Tracker . That puts the packer/feeder margin spread at $381 per head in favor of the feeder.

Cash cattle averaged $189.65 per cwt. the week ending June 8, while composite wholesale beef prices posted $1.39 per cwt. gains to close at $312.08 per cwt. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $375.26 per head, down $1.16 per head from the previous week, and about $213 less than feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $166.37 per cwt., while cattle placed on feed last week have a breakeven of $183.56 per cwt., which is about $3 per cwt. higher than the previous week. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $256.09 per cwt., or $7 per cwt. more than a month ago. The feeder steer price is 21% higher than last year.

The estimated total cost for finishing a steer last week was $2,329 per head, down $1 per head from the previous week and up 8% from last year’s estimate of $2,145 per head.

Fed cattle slaughter totaled an estimated 501,638, up 60,458 head from the same week last year. Packing plant capacity utilization was estimated at 85.7% compared to 82.0% last year.

Farrow-to-finish hog producers found positive margins of $44 per head last week, unchanged from the previous week. Lean carcass prices averaged $90.15 per cwt., also unchanged from the previous week and down $3.83 per cwt. lower than last year.

Pork packers saw average profits of $11 per head, or $4 per head less than the previous week. Last year pork packer margins were $24 in the red. Hog slaughter was estimated at 2.422 million head, up 267,000 head from the previous week and up 68,000 head from last year.

Pork packer capacity utilization was estimated at 89.7% compared to 87.1% 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.)

Profit Tracker: Cattle Margins Retreat; Pork Holds Above $40

Thu, 06 Jun 2024 20:44:50 GMT

Negotiated cash cattle sold $1.30 per cwt. lower last week and feedyard margins were reduced by $75 per head for an industry average profit of $327. Meanwhile, beef packers saw their margins slip another $2 with losses of $86 per head the industry average, according to the Sterling Beef Profit Tracker . That puts the packer/feeder margin spread at $413 per head in favor of the feeder.

Cash cattle averaged $189.82 per cwt. the week ending June 1, while composite wholesale beef prices posted $2.57 per cwt. gains to close at $310.69 per cwt. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $376.42 per head, up $2.98 per head from the previous week, and about $204 less than feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $166.46 per cwt., while cattle placed on feed last week have a breakeven of $179.77 per cwt., which is about $5 per cwt. lower than the previous week. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $251.86 per cwt., or $5 per cwt. less than a month ago. The feeder steer price is 13% higher than last year.

The estimated total cost for finishing a steer last week was $2,330 per head, up $57 per head from the previous week and up 8% from last year’s estimate of $2,137 per head.

Fed cattle slaughter totaled an estimated 439,000, down 13,000 head from the same week last year. Packing plant capacity utilization was estimated at 75.0% compared to 77.3% last year.

Farrow-to-finish hog producers found positive margins of $45 per head last week, up $1 from the previous week. Lean carcass prices averaged $90.16 per cwt., up $0.74 per cwt. from the previous week and $2.48 per cwt. higher than last year.

Pork packers saw average profits of $15 per head, or $4 per head better than the previous week. Last year pork packer margins were $15 in the red. Hog slaughter was estimated at 2.155 million head, down 207,000 head from the previous week and up 131,000 head from last year.

Pork packer capacity utilization was estimated at 79.8% compared to 74.9% 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.)

Profit Tracker: Cattle Margins Closing on $400; Pork Margins Solid

Tue, 21 May 2024 21:40:05 GMT

Cattle feeding margins grew significantly last week as the cash market saw an average $3 rally. Beef and pork packers both saw their margins improve with higher cutout values, but beef packer losses remain near $100 per head.

Negotiated cash cattle sold at $189.43 per cwt. the week ending May 18, boosting feedyard margins gained $83 per head for an industry average profit of $375. Meanwhile, beef packers found a $40 per head improvement that left their average losses at $98 per head, according to the Sterling Beef Profit Tracker . That puts the margin spread at $473 per head in favor of the feeder, an increase of $34.

Composite wholesale beef prices posted $4.70 per cwt. gains to close at $302.13 per cwt. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $378.08 per head, down $6.13 per head from the previous week, and about $188 less than feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $162.68 per cwt., while cattle placed on feed last week have a breakeven of $184.61 per cwt., which is about $5 per cwt. higher than the previous week. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $258.62 per cwt., or $9.62 per cwt. higher than a month ago. The feeder steer price is 21% higher than last year.

The estimated total cost for finishing a steer last week was $2,277 per head, down $41 per head from the previous week and up 7% from last year’s estimate of $2,123 per head.

Fed cattle slaughter totaled an estimated 487,370, down 19,560 head from the same week last year. Packing plant capacity utilization was estimated at 83.2% compared to 86.5% last year.

Farrow-to-finish hog producers found positive margins at $46 per head last week, down $3 from the previous week. Lean carcass prices averaged $91.48 per cwt., down $2.28 per cwt. from the previous week and $2.80 per cwt. higher than last year.

Pork packers saw average profits of $9 per head, or $10 per head better than the previous week. Last year pork packer margins were $19 in the red. Hog slaughter was estimated at 2.404 million head, up 25,000 head from the previous week and down 3,000 head from last year.

Pork packer capacity utilization was estimated at 89.2% compared to 89.2% 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.)

Profit Tracker: Cattle Margins Near $300; Pork Margins at $50

Tue, 14 May 2024 19:40:03 GMT

Negotiated cash cattle sold at steady prices last week and feedyard margins gained $7 per head for an industry average profit of $291. Meanwhile, beef packers saw their margins erode another $30 per head to average losses of $138 per head, according to the Sterling Beef Profit Tracker . That puts the margin spread at $429 per head in favor of the feeder.

Cash cattle averaged $186.39 per cwt. the week ending May 11, while composite wholesale beef prices posted $1.28 per cwt. losses to close at $297.43 per cwt. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $384.21 per head, up $1.49 per head from the previous week, and about $186 less than feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $165.57 per cwt., while cattle placed on feed last week have a breakeven of $178.75 per cwt., which is about $4 per cwt. lower than the previous week. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $248.98 per cwt., or $7 per cwt. less than a month ago. The feeder steer price is 18% higher than last year.

The estimated total cost for finishing a steer last week was $2,318 per head, down $6 per head from the previous week and up 9% from last year’s estimate of $2,114 per head.

Fed cattle slaughter totaled an estimated 500,088, down 7,719 head from the same week last year. Packing plant capacity utilization was estimated at 85.4% compared to 86.7% last year.

Farrow-to-finish hog producers found positive margins at $50 per head last week, up $4 from the previous week. Lean carcass prices averaged $93.76 per cwt., up $0.04 per cwt. from the previous week and $14.14 per cwt. higher than last year.

Pork packers saw average losses of $1 per head, or $1 per head less than the previous week. Last year pork packer margins were $3 in the red. Hog slaughter was estimated at 2.390 million head, down 17,000 head from the previous week and up 29,000 head from last year.

Pork packer capacity utilization was estimated at 88.6% compared to 87.5% 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.)

Profit Tracker: Beef, Pork Producer Margins Improve

Tue, 30 Apr 2024 19:46:10 GMT

Negotiated cash cattle sold $2 higher last week and feedyard margins gained $70 per head for an industry average profit of $259. Meanwhile, beef packers saw their margins improve a modest $11 per head to average losses of $201 per head, according to the Sterling Beef Profit Tracker . That puts the margin spread at $460 per head in favor of the feeder.

Cash cattle averaged $185.08 per cwt. the week ending Apr. 27, while composite wholesale beef prices posted $0.73 per cwt. losses to close at $284.83 per cwt. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $384.54 per head, up about $14 per head from the previous week, and about $205 less than feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $166.60 per cwt., while cattle placed on feed last week have a breakeven of $182.61 per cwt., which is up about $4 per cwt. from the previous week. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $256.01 per cwt., or $3 per cwt. more than a month ago. The feeder steer price is 22% higher than last year.

The estimated total cost for finishing a steer last week was $2,332 per head, down $43 per head from the previous week and up 9% from last year’s estimate of $2,122 per head.

Fed cattle slaughter totaled an estimated 491,013, up 1,441 head from the same week last year. Packing plant capacity utilization was estimated at 83.8% compared to 83.6% last year.

Farrow-to-finish hog producers found positive margins at $45 per head last week, up $4 from the previous week. Lean carcass prices averaged $93.13 per cwt., up $1.68 per cwt. from the previous week and $19.44 per cwt. higher than last year.

Pork packers saw average losses of less than $1 per head, or $8 per head less than the previous week. Last year pork packer margins were about $2 per head. Hog slaughter was estimated at 2.379 million head, down 108,000 head from the previous week and down 1,440 head from last year.

Pork packer capacity utilization was estimated at 88.2% compared to 88.3% 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.)

Profit Tracker: Packer Losses Mount; Pork Margins Solid

Thu, 25 Apr 2024 20:13:44 GMT

Negotiated cash cattle sold $1 lower last week and feedyard margins slipped $24 per head for an industry average profit of $188. Meanwhile, beef packers saw their margins decline another $3 per head to average losses of $214 per head, according to the Sterling Beef Profit Tracker . That puts the margin spread at $402 per head in favor of the feeder.

Cash cattle averaged $183.14 per cwt. the week ending Apr. 20, while composite wholesale beef prices posted $3.15 per cwt. losses to close at $285.48 per cwt. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $370 per head, down about $5 per head from the previous week, and about $211 less than feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $169.70 per cwt., while cattle placed on feed last week have a breakeven of $178.20 per cwt., which is up about $5 per cwt. from the previous week. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $249 per cwt., or $6 per cwt. less than a month ago. The feeder steer price is 20% higher than last year.

The estimated total cost for finishing a steer last week was $2,376 per head, up $5 per head from the previous week and up 11% from last year’s estimate of $2,124 per head.

Fed cattle slaughter totaled an estimated 499,100, up 15,689 head from the same week last year. Packing plant capacity utilization was estimated at 85.2% compared to 82.5% last year.

Farrow-to-finish hog producers found positive margins at $41 per head last week, down $1 from the previous week. Lean carcass prices averaged $91.45 per cwt., down $1.27 per cwt. from the previous week and $21.20 per cwt. higher than last year.

Pork packers saw profits of about $8 per head, or $24 per head more than the previous week. Last year pork packer margins were about $8 per head. Hog slaughter was estimated at 2.487 million head, up 2,000 head from the previous week and up 35,000 head from last year.

Pork packer capacity utilization was estimated at 92.3% compared to 91.2% 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.)

Profit Tracker: Packer/Feeder Margin Spread Exceeds $400

Wed, 10 Apr 2024 19:52:32 GMT

Negotiated cash cattle sold $3 lower last week but lower costs helped boost feedyard margins $30 per head for an industry average profit of $202. Meanwhile, beef packers saw their margins erode another $50 per head to average losses of $224 per head, according to the Sterling Beef Profit Tracker . That puts the margin spread at $426 per head in favor of the feeder.

Cash cattle averaged $186.50 per cwt. the week ending Apr. 6, while composite wholesale beef prices posted $7.21 per cwt. losses to close at $291.35 per cwt. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $378 per head, down about $10 per head from the previous week, and about $219 less than feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $172.07 per cwt., while cattle placed on feed last week have a breakeven of $172.04 per cwt., which is down about $8 per cwt. from the previous week. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $2339.97 per cwt., or $10 per cwt. less than a month ago. The feeder steer price is 20% higher than last year.

The estimated total cost for finishing a steer last week was $2,409 per head, down $69 per head from the previous week and up 11% from last year’s estimate of $2,138 per head.

Fed cattle slaughter totaled an estimated 484,764, up 10,796 head from the same week last year. Packing plant capacity utilization was estimated at 82.8% compared to 80.9% last year.

Farrow-to-finish hog producers found positive margins at $31 per head last week, up $14 from the previous week. Lean carcass prices averaged $86.85 per cwt., up $4.62 per cwt. from the previous week and $13.04 per cwt. higher than last year.

Pork packers saw profits of about $10 per head, or $5 per head less than the previous week. Last year pork packer margins were near breakeven. Hog slaughter was estimated at 2.421 million head, up 17,000 head from the previous week and up 52,000 head from last year.

Pork packer capacity utilization was estimated at 89.8% compared to 88.2% 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.)

Profit Tracker: Feeding Margins Improve, Packers in Black

Mon, 29 Jan 2024 19:26:18 GMT

Cash cattle prices saw an average $1.30 per cwt. gain last week which improved closeouts by $50 per head, leaving per head losses at $84. Beef packers saw their margins improve $39 per head, erasing $11 per head loss and adding a $28 per head profit, according to the Sterling Beef Profit Tracker .

Cash cattle averaged $175.65 per cwt. last week while wholesale beef prices improved $6 per cwt. to $297.25 per cwt. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $426 per head, down about $3 per head from the previous week, and about $146 less than feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $181.68 per cwt., while cattle placed on feed last week have a breakeven of $166.02 per cwt., which is about equal to a month ago. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $227.77 per cwt., or $2 per cwt. more than a month ago. The feeder steer price is 22% higher than last year.

The estimated total cost for finishing a steer last week was $2,543 per head, up 15% from last year’s estimate of $2,152 per head.

Fed cattle slaughter totaled an estimated 485,748, down 18,000 head from the same week last year. Packing plant capacity utilization was estimated at 82.9% compared to 86.0% last year.

Farrow-to-finish hog producers saw losses of $38 per head last week, about $12 less than losses the previous week. Pork producer margins have now been negative every week for the past year. Lean carcass prices averaged $53.89 per cwt., $4.93 per cwt. higher than the previous week and down $19.64 from last year (-27%).

Pork packers saw profits of about $65 per head, or $9 per head less than the previous week, still the second best profit week since January 2022. Last year pork packers saw profits of $6 per head. Hog slaughter was estimated at 2.719 million head, up 89,000 head from the previous week and up 173,000 head from last year.

Pork packer capacity utilization was estimated at 100.5% compared to 92.0% 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.)

Profit Tracker: Margins Improve as Weather Tanks

Wed, 17 Jan 2024 20:11:22 GMT

Cash cattle prices were mostly steady in the aftermath of last week’s winter storm and cattle feeding margins improved modestly. Cattle feeders lost an estimated $106 per head the week ending Jan. 13, an improvement of $54 per head, according to the Sterling Beef Profit Tracker . Higher wholesale beef prices helped reduce packer losses by $15 per head to a total of $110.

Cash cattle averaged $174.11 per cwt. last week while wholesale beef prices improved $4 per cwt. to $280.35 per cwt. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $436 per head, down about $11 per head from the previous week, and about $128 less than feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $181.73 per cwt., while cattle placed on feed last week have a breakeven of $160.71 per cwt., which is about $2 per cwt. lower than a month ago. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $218.15 per cwt., or $1 per cwt. less than a month ago. The feeder steer price is 18% higher than last year.

The estimated total cost for finishing a steer last week was $2,544 per head, up 16% from last year’s estimate of $2,143 per head.

Fed cattle slaughter totaled an estimated 429,156, down 73,000 head from the same week last year. Packing plant capacity utilization was estimated at 73.3% compared to 85.7% last year.

Farrow-to-finish hog producers saw losses of $55 per head last week, about $2 less than losses the previous week. Pork producer margins have now been negative every week for the past year. Lean carcass prices averaged $47.46 per cwt., $0.06 per cwt. lower than the previous week and down $28.14 from last year (-37%).

Pork packers saw profits of about $72 per head, or $4 per head more than the previous week, and their best profit margins since January 2022. Last year pork packers saw profits of $5 per head. Hog slaughter was estimated at 2.174 million head, down 197,000 head from the previous week and down 515,000 head from last year.

Pork packer capacity utilization was estimated at 80.3% compared to 97.4% 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.)

Profit Tracker: Cattle Losses Reach Triple Digits

Tue, 12 Dec 2023 16:13:45 GMT

Cattle feeding losses increased nearly five-fold last week with a $5 per cwt. decline in cash prices. Lower cattle costs, however, did not aid beef packers as per head losses more than doubled from the prior week.

Cattle feeding losses fell to $100.52 per head the week ending Dec. 9, $77 per head more than the previous week, according to the Sterling Beef Profit Tracker. Beef packers saw their losses increase $13 per head to total $23. A month ago cattle feeders saw average profits of $94 per head.

For the week ending Dec. 8, cash cattle prices averaged $169.47 per cwt., which is roughly $5 lower than the previous week. Wholesale beef prices posted an average of $287.03 per cwt., roughly $6 per cwt. lower than the previous week. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $443 per head, down about $62 per head from the previous week, and about $83 less than feed costs for cattle sold the same week a month ago. Feed costs are 20% lower than a year ago.

Cattle marketed last week had a breakeven of $176.65 per cwt., while cattle placed on feed last week have a breakeven of $163.16 per cwt., which is about $3 per cwt. lower than a month ago. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $219.16 per cwt., or $13 per cwt. less than a month ago. The feeder steer price is 19% higher than last year.

The estimated total cost for finishing a steer last week was $2,473 per head, up 19% from last year’s estimate of $2,008 per head.

Fed cattle slaughter totaled an estimated 494,030, down 2,000 head from the same week last year. Packing plant capacity utilization was estimated at 84.4% compared to 86.8% last year.

Farrow-to-finish hog producers saw losses of $51 per head last week, about $9 more than losses the previous week. Pork producer margins have now been negative every week for the past year. Lean carcass prices averaged $59.15 per cwt., $2.29 per cwt. lower than the previous week and down $26.98 from last year (-31%).

Pork packers saw profits of about $54 per head, or $7 per head more than the previous week, and their best profit margins since January 2022. Last year pork packers saw losses of $5 per head. Hog slaughter was estimated at 2.687 million head, down 8,000 head from the previous week and up 108,000 head from last year.

Pork packer capacity utilization was estimated at 99.6% compared to 93.4% 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.)

Profit Tracker: Red Ink Flows

Thu, 07 Dec 2023 20:23:18 GMT

Cattle feeders saw average losses increase to $23 per head the week ending Dec. 2 while beef packers found losses of $13 per head, a significant improvement over the $38 per head losses the week before, according to the Sterling Beef Profit Tracker .

For the week ending Dec. 2, cash cattle prices averaged $174.49 per cwt., which is roughly $3.50 lower than the previous week. Wholesale beef prices posted an average of $293 per cwt., a $0.47 per cwt. increase from the previous week. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $505 per head, down about $7 per head from the previous week, and about $18 less than feed costs for cattle sold the same week a month ago. Feed costs are 13% lower than a year ago.

Cattle marketed last week had a breakeven of $176.13 per cwt., while cattle placed on feed last week have a breakeven of $165.57 per cwt., which is about $4 per cwt. lower than a month ago. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $223.37 per cwt., or $7 per cwt. less than a month ago. The feeder steer price is 11% higher than last year.

The estimated total cost for finishing a steer last week was $2,465 per head, up 16% from last year’s estimate of $2,070 per head.

Fed cattle slaughter totaled an estimated 487,045, up 74,399 head from the previous week and 22,174 fewer than the same week last year. Packing plant capacity utilization was estimated at 83.2% compared to 89.0% last year.

Farrow-to-finish hog producers saw losses of $49 per head last week, about $7 more than losses the previous week. Pork producers saw losses of $3 per head the same week a year ago. Lean carcass prices averaged $61.44 per cwt., down $3.26 per cwt. from the previous week and down $26.62 from last year (-30%).

Pork packers saw profits of about $46 per head, or $5 per head more than the previous week, and their best profit margins since January 2022. Last year pork packers saw losses of $7 per head. Hog slaughter was estimated at 2.704 million head, up 479,000 head from the previous week and up 121,000 head from last year.

Pork packer capacity utilization was estimated at 99.6% compared to 93.4% 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.)

Profit Tracker: Cattle Margins Fall Underwater

Tue, 21 Nov 2023 15:18:21 GMT

Cattle feeders have seen profit margins tumble more than $300 per head over the past month as cash prices eroded an average of nearly $9 per cwt. Last week found margins decline about $97 per head to an average loss of $2.67 per head, according to the Sterling Beef Profit Tracker . That marked the first average negative margin since Oct. of last year. Beef packers found improving margins, yet remain $69 per head underwater. The packer-feeder margin spread narrowed to $66, advantage cattle feeders.

For the week ending Nov. 18, cash cattle prices averaged $177.77 per cwt., which is roughly $2 lower than the previous week. Wholesale beef prices posted an average of $291.54 per cwt., a $3.62 per cwt. decline from the previous week. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $516 per head, down about $10 per head from the previous week, and about $5 more than feed costs for cattle sold the same week a month ago. Feed costs are 17% lower than a year ago.

Cattle marketed last week had a breakeven of $177.96 per cwt., while cattle placed on feed last week have a breakeven of $165.71 per cwt., which is about $11 per cwt. lower than a month ago. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $225.09 per cwt., or $17 per cwt. less than a month ago. The feeder steer price is 22% higher than last year.

The estimated total cost for finishing a steer last week was $2,491 per head, up 19% from last year’s estimate of $2,026 per head.

Fed cattle slaughter totaled an estimated 490,356, up 13,878 head from the previous week and 27,579 fewer than the same week last year. Packing plant capacity utilization was estimated at 83.7% compared to 90.6% last year.

Farrow-to-finish hog producers saw losses of $28 per head last week, about $9 more than losses the previous week. Pork producers saw breakeven margins the same week a year ago. Lean carcass prices averaged $64.70 per cwt., down $3.96 per cwt. from the previous week and down $23.03 from last year (-26%).

Pork packers saw profits of about $39 per head, or $5 per head more than the previous week, and their best profit margins since January 2022. Last year pork packers saw profits of $7 per head. Hog slaughter was estimated at 2.649 million head, up 72,000 head from the previous week and up 52,000 head from last year.

Pork packer capacity utilization was estimated at 97.8% compared to 94.2% 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.)

Profit Tracker: Packers Reduce Harvest as Margin Woes Worsen

Wed, 04 Oct 2023 18:54:23 GMT

Beef packers see their margins slip further into the red the week ending Sept. 30. Packer losses totaled $89 per head, $23 per more than the previous week, according to the Sterling Beef Profit Tracker . Cattle feeding margins slipped modestly but finished the week with average profits of $300 per head. The packer-feeder margin spread widened to $389 per head in favor of cattle feeders.

For the week ending September 30, cash cattle prices averaged $183.97 per cwt., down about $1.28 from the previous week. That price is 21% higher than last year’s $145.25 per cwt. cash price.

Wholesale beef prices posted an average of $297.05 per cwt., a $2.26 per cwt. decline from the previous week and a $14.02 decline the past month. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $530 per head, down about $34 per head from the previous week, and about $66 less than feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $162.55 per cwt., while cattle placed on feed last week have a breakeven of $183.37 per cwt. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $255.09 per cwt., and feed costs of $375.59 per head. The feeder steer price is 32% higher than last year.

The estimated total cost for finishing a steer last week was $2,275 per head, up 13% from last year’s estimate of $1,975 per head.

Fed cattle slaughter totaled an estimated 491,808 down 10,192 head from the previous week and 39,930 fewer than the same week last year. Packing plant capacity utilization was estimated at 81.9% compared to 90.9% last year.

Farrow-to-finish hog producers saw losses of $7 per head last week after mostly breakeven margins the week before. Pork producers saw profits of $18 per head the same week a year ago. Lean carcass prices averaged $77.77 per cwt., down $2.70 per cwt. from the previous week.

Pork packers closed the week with $32 per head profits, up $2 per head from the previous week. Last year pork packer margins were negative $3 per head. Hog slaughter was estimated at 2.604 million head, up 67,000 head from the week before and up 119,000 head from last year.

Pork packer capacity utilization was estimated at 96.1% compared to 90.0% 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.)

Profit Tracker: Feeding Margins Strong, Packer Woes Continue

Thu, 24 Aug 2023 21:23:52 GMT

Cattle feeding margins declined $21 per head last week, yet cattle feeders saw average profits of $423 per head. Beef packers lost an average of $45 per head, a significant improvement from the previous week’s losses of $121, according to the Sterling Beef Profit Tracker . The current beef margin spread represents a dramatic 180-degree reversal since the excessive packer profits of two years ago.

For the week ending August 19, cash cattle prices posted roughly a $1 per cwt. decline to average $186.30 per cwt. That price is 225% higher than last year’s $145.02 per cwt. cash price.

Wholesale beef prices posted an average of $306.29 per cwt., a $7.82 per cwt. gain from the previous week. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $532 per head, down about $15 per head from the previous week, and 8% lower than the $575 feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $156.07 per cwt., while cattle placed on feed last week have a breakeven of $182.16 per cwt. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $245.82 per cwt., and feed costs of $433 per head. The feeder steer price is 30% higher than last year.

The estimated total cost for finishing a steer last week was $2,184 per head, up 14% from last year’s estimate of $1,871 per head.

Fed cattle slaughter totaled an estimated 484,176, up 10,218 head from the previous week and 3,000 fewer than the same week last year. Packing plant capacity utilization was estimated at 84.7% compared to 91.1% last year.

Farrow-to-finish hog producers saw profits of about $24 per head last week, about $8 per head less than the previous week. Pork producers saw profits of $85 per head the same week a year ago. Lean carcass prices averaged $95.89 per cwt., down $3.61 per cwt. from the previous week.

Pork packers closed the week with $15 per head profits, down $1 per head from the previous week. Last year pork packers were losing about $29 per head. Hog slaughter was estimated at 2.414 million head, up 60,000 head from the week before and down 7,000 head from last year.

Pork packer capacity utilization was estimated at 88.7% compared to 87.1% 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.)

Profit Tracker: Packer-Feeder Margin Spread Nears $600

Wed, 09 Aug 2023 13:45:12 GMT

The spread between cattle feeding margins and beef packer margins continues to widen, last week reaching $582 per head, in favor of the cattle feeder. That’s according to the Sterling Beef Profit Tracker which calculates weekly industry beef and pork margins. The current beef margin spread represents a dramatic 180-degree reversal since the excessive packer profits of two years ago.

For the week ending August 5, average cattle feeding margins were $482 per head, a $39 per head increase from the previous week. Meanwhile, packers lost an average of $99 per head, about a $3 per head improvement from the previous week.

Cash cattle prices posted roughly a $2 per cwt. gain last week to average $187.63 per cwt. That price is 25% higher than last year’s $141.32 per cwt. cash price.

Wholesale beef prices posted an average of $299 per cwt., about steady with the previous week. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $553 per head, down about $25 per head from the previous week, but 7% higher than the $514 feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $153.17 per cwt., while cattle placed on feed last week have a breakeven of $181.73 per cwt. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $244.71 per cwt., and feed costs of $435 per head. The feeder steer price is 30% higher than last year.

The estimated total cost for finishing a steer last week was $2,144 per head, up 14% from last year’s estimate of $1,841 per head.

Fed cattle slaughter totaled an estimated 476,914, down 4,668 head from the previous week and 29,000 fewer than the same week last year. Packing plant capacity utilization was estimated at 83.4% compared to 88.5% last year.

Farrow-to-finish hog producers saw profits of about $41 per head last week, about $9 per head less than the previous week. Pork producers saw profits of $92 per head the same week a year ago. Lean carcass prices averaged $104.37 per cwt., down $2.96 per cwt. from the previous week.

Pork packers closed the week with $12 per head profits, up $7 per head from the previous week. Last year pork packers were losing about $14 per head. Hog slaughter was estimated at 2.338 million head, down 54,000 head from the week before and up 3,000 head from last year.

Pork packer capacity utilization was estimated at 85.7% compared to 84.5% 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.)

Profit Tracker: Flip The Script

Wed, 19 Jul 2023 18:53:17 GMT

Cattle feeders found average profits near $435 per head the week ending July 15, about steady with profits the previous week. The week’s 5-area direct price was $184.36 per cwt. an increase of $1.29 per cwt., which is $38 per cwt. higher (+21%) than the same week a year ago, according to the Sterling Beef Profit Tracker .

Beef packer margins slipped into the red last week with average losses of about $10 per head, or $114 less than the previous week. Wholesale beef prices posted an average of $305 per cwt., down about $12 from the previous week. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $578 per head, down about $3 per head from the previous week, but 15% higher than the $491 feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $153.35 per cwt., while cattle placed on feed last week have a breakeven of $178.27 per cwt. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $238.46 per cwt., and feed costs of $439 per head. The feeder steer price is 28% higher than last year.

The estimated total cost for finishing a steer last week was $2,147 per head, up 14% from last year’s estimate of $1,841 per head.

Fed cattle slaughter totaled an estimated 493,740 head, up about 73,000 head from the previous week and 30,000 fewer than the same week last year. Packing plant capacity utilization was estimated at 86.3% compared to 91.6% last year.

Farrow-to-finish hog producers saw profits of about $36 per head last week, about $5 per head more than the previous week. Pork producers saw profits of $82 per head the same week a year ago. Lean carcass prices averaged $102.62 per cwt., up $2.29 per cwt. from the previous week.

Pork packers closed the week with $9 per head profits, up $4 per head from the previous week. Last year pork packers were losing about $24 per head. Hog slaughter was estimated at 2.340 million head, up 386,000 from the week before and up 18,000 head from last year.

Pork packer capacity utilization was estimated at 85.9% compared to 81.3% 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.)

Profit Tracker: Beef, Pork Higher Again

Fri, 07 Jul 2023 19:17:04 GMT

Profits continue to increase for both cattle and hog producers. Cattle feeders recorded average profits of $247 per head last week, up slightly from the previous week, according to the Sterling Beef Profit Tracker . The margins represent a $363 per head improvement over the average losses of $116 recorded last year at this time, according to estimates developed by John Nalivka, president of Sterling Marketing, Vale, Ore.

Beef cutout values increased $1 per cwt. last week, but beef packer margins declined $9.35 to $67 per head. A month ago packers were losing $81 on every animal processed, and losses totaled $19 per head at the same time last year.

Farrow-to-finish hog margins increased $18.90 per head to more than $103 per head, the highest pork profit margins in the Sterling Pork Profit Tracker database. Negotiated cash hog prices rallied $11 per cwt. to $125.25 per cwt. Pork packer margins were estimated at $3.66 per head.

The spike in both cattle feeding and farrow-to-finish profits is due to significantly higher cash prices and lower overall feed prices. Cash prices for fed cattle are more than $27 per cwt. higher than last year, and negotiated hog prices are nearly $51 per cwt. higher than last year.

Profit Tracker: Feedyard Margins Dip $31 Per Head

Fri, 07 Jul 2023 19:17:04 GMT

Cattle feeding margins dipped more than $31 per head lower last week to average $157. The loss in profitability was due to an average $1.86 per cwt. decrease in cash cattle prices, according to the Sterling Beef Profit Tracker .

Profit margins for pork producers dropped $3.08 per head last week to $72.59 per head. The decrease was tied to a $0.22 per cwt. loss in negotiated cash prices. Both beef and pork margins are calculated by John Nalivka, president, Sterling Marketing, Vale, Ore.

Cattle feeders’ profits last week were $271 per head more than at the same time last year when $114 per head losses were recorded. Beef cutout values remained steady with a slight increase, and packer margins increased $67.41 per head, leaving packers with per head gains of $20.89. A week ago packers recorded losses of $46 on every animal processed, while profits totaled $93 per head at the same time last year.

Farrow-to-finish hog margins posted a loss from last week, and are now more than $14.50 per head less than last month. Pork packers saw their margins increase slightly last week, with the average at $1.85 in the profit column for every animal processed.

The spike in both cattle feeding and farrow-to-finish profits this spring is due to significantly higher cash prices and lower overall feed prices. Cash prices for fed cattle are nearly $21 per cwt. higher than last year, and negotiated hog prices are $19 per cwt. higher than last year.

Profit Tracker: Feedyard Margins Top $200 Per Head

Fri, 07 Jul 2023 19:17:04 GMT

Cattle feeding margins jumped nearly $20 per head higher last week to average $216. The increase in profitability was due to an average $0.42 per cwt. increase in cash cattle prices and a decline in total feed costs for the calculated feeding period, according to the Sterling Beef Profit Tracker .

Profit margins for pork producers rose $4.97 per head last week to $80.60 per head. The increase was tied to a $0.35 per cwt. improvement in negotiated cash prices. Both beef and pork margins are calculated by John Nalivka, president, Sterling Marketing, Vale, Ore.

Cattle feeders’ profits last week were $319 per head more than at the same time last year when $103 per head losses were recorded. Beef cutout values declined nearly $6 per cwt. last week, and packer margins declined $64 per head, leaving packers with per head losses of $47. A month ago packers recorded losses of $63 on every animal processed, while profits totaled $15 per head at the same time last year.

Farrow-to-finish hog margins posted the first gain in several weeks, and are now about $20 per head less than last month. Pork packers saw their margins decline slightly last week, with the average at $3..44 in the loss column for every animal processed.

The spike in both cattle feeding and farrow-to-finish profits this spring is due to significantly higher cash prices and lower overall feed prices. Cash prices for fed cattle are more than $22 per cwt. higher than last year, and negotiated hog prices are more than $22 per cwt. higher than last year.

Profit Tracker: Lower Beef, Pork Margins

Fri, 07 Jul 2023 19:17:04 GMT

Profit margins for both beef and pork producers fell slightly last week, yet both sectors remain solidly profitable.

Cattle feeders recorded average profits of $223 per head last week, about $19 per head lower than the previous week, according to the Sterling Beef Profit Tracker . The margins represent a $252 per head improvement over the average losses of $29 recorded last year at this time, according to estimates developed by John Nalivka, president of Sterling Marketing, Vale, Ore.

Beef cutout values declined $8.70 per cwt. last week, and beef packer margins declined $68 per head to end the week with losses of $36 per head. A month ago packers saw profits of $8 on every animal processed, and losses totaled $49 per head at the same time last year.

Farrow-to-finish hog margins declined $5.59 per head but profits remain more than $111 per head. The previous week recorded the highest pork profit margins in the Sterling Pork Profit Tracker database. Negotiated cash hog prices declined $0.35 per cwt. to $129.38 per cwt. Pork packers were estimated to lose $2.35 for every animal processed.

The spike in both cattle feeding and farrow-to-finish profits this spring is due to significantly higher cash prices and lower overall feed prices. Cash prices for fed cattle are more than $23 per cwt. higher than last year, and negotiated hog prices are nearly $50 per cwt. higher than last year.

Profit Tracker: Significant Rise

Fri, 07 Jul 2023 19:17:02 GMT

Profit margins for cattle feeders rose significantly in the past week, while pork producers saw a slight decrease from their still profitable farrow to finish operations.

Cattle feeders recorded average profits of $357.58 per head last week, more than $77 per head higher than the previous week, according to the Sterling Beef Profit Tracker . The margins represent a $506 per head improvement over the average losses of $148.49 recorded last year at this time, according to estimates developed by John Nalivka, president of Sterling Marketing, Vale, Ore.

Beef cutout values were up $4.12 per cwt. last week, and beef packer margins increased $3.40 per head to end the week with proits of $71.50 per head. A month ago packers saw profits of $80.89 on every animal processed, and gains totaled just $17.69 per head at the same time last year.

Farrow-to-finish hog margins declined $9.09 per head but profits remain more than $102 per head. That is nearly an $85 difference from last year when pork producers saw only a $17.59 profit. Negotiated cash hog prices declined $4.13 per cwt. to $128.01 per cwt. Pork packers were estimated to make $5.26 for every animal processed.

The spike in both cattle feeding and farrow-to-finish profits this summer is due to significantly higher cash prices and lower overall feed prices. Cash prices for fed cattle are more than $44 per cwt. higher than last year, and negotiated hog prices are nearly $27 per cwt. higher than last year.

Profit Tracker: Beef Rising, Pork Falling

Fri, 07 Jul 2023 19:17:02 GMT

Profit margins for cattle feeders moved higher last week while pork producers saw a dip in profitability. Both sectors remain solidly profitable.

Cattle feeders recorded average profits of $381.70 per head last week, about $24 per head more than the previous week, according to the Sterling Beef Profit Tracker . The margins represent a whopping $506.53 per head improvement over the average losses of $124.83 recorded last year at this time, according to estimates developed by John Nalivka, president of Sterling Marketing, Vale, Ore.

Beef cutout values improved $8.64 per cwt. last week, boosting beef packer margins to $81.12 per head to end the week. A month ago packers recorded profits of $47.75 on every animal processed, compared to just over $10 per head at the same time last year.

Farrow-to-finish hog margins declined $10.43 per head with average profits at more than $91 per head. Negotiated cash hog prices dipped by $4.73 per cwt. to $123.28 per cwt. Pork packers were estimated to earn $8.49 for every animal processed.

The spike in both cattle feeding and farrow-to-finish profits this summer is due to significantly higher cash prices and lower overall feed prices. Cash prices for fed cattle are more than $45 per cwt. higher than last year, and negotiated hog prices are more than $24 per cwt. higher than last year.

Profit Tracker: Feedyard Margins Rising

Fri, 07 Jul 2023 19:17:02 GMT

As America’s cattle market continues to defy historical trends, cattle feeding margins have benefited with solid profits most of the year. So far, June has produced weekly increases to per head feedyard profit margins, a rare occurrence in historical feedyard closeout data.

Last week saw cattle feeding margins increase $8 per head to an average of $172. The modest increase in profitability was due to $1 higher cash fed cattle prices and a slight decline in the average cost of gain, according to the Sterling Beef Profit Tracker .

Profit margins for pork producers recorded slight gains last week at $74.74 per head. Negotiated cash hog prices were reported at $1.50 per cwt. higher for the week while feed costs declined slightly. Pork packers recorded average profits of $9.56 per hog last week, up from the $3 profits they earned the week before. Both beef and pork margins are calculated by John Nalivka, president, Sterling Marketing, Vale, Ore.

Cattle feeders’ profits last week were $306 per head more than at the same time last year when $133 per head losses were recorded. Beef cutout values declined $1.44 per cwt. last week, and packer margins declined $14 per head, leaving packers with per head profits of $47. A month ago packers recorded losses of $47 on every animal processed, while profits totaled $61 per head at the same time last year.

Farrow-to-finish hog margins are about $6 per cwt. below where they were a month ago, though significantly better than last year’s $7.35 per head profits. The spike in both cattle feeding and farrow-to-finish profits this spring is due to significantly higher cash prices and lower overall feed prices. Cash prices for fed cattle are nearly $24 per cwt. higher than last year, and negotiated hog prices are more than $14 per cwt. higher than last year.