Fed Cattle
Feedyard margins declined $28 per head last week to total an average loss of $70 per head, according to the Sterling Beef Profit Tracker.
Feedyard margins dropped another $20 last week to total an average loss of $90 per head, according to the Sterling Beef Profit Tracker.
Calling losses of $193 per head an improvement may be painful, but it’s accurate.
Feedlot closeouts continue ending on positive notes.
Cattle feeders turned a profit for the eighth consecutive week.
Cattle feeders saw positive margins on closeouts for the ninth consecutive week.
The Sterling Beef Profit Tracker reports average cattle feeding closeouts were in the black last week, but with little room to spare.
Feedyard profit margins rebounded slightly after last week’s $2 rally in the cash fed cattle market.
Leverage shifting from feedyards to packers as summer begins.
As expected, beef packer margins jumped wildly higher the week ending Aug. 17, while cattle feeding margins slipped into the red.
Modest increases in cash prices for cattle and hogs helped boost average feeding profit margins the final week of February, while margins for beef and pork packers declined.
Lower average cattle prices last week cut average feedyard margins by $43 per head last week, while pork producers saw a $5 per head increase in average margins.
Average cattle feeding margins improved the final week of March, while average farrow-to-finish hog margins declined modestly.
Cattle feeding margins improved with a $2 per cwt. increase in cash cattle prices while farrow-to-finish hog margins declined modestly on slightly lower lean carcass prices.
Both cattle and hog finishing estimated margins were positive last week despite rising feed costs across both enterprises. Cattle slaughter totals increased while hog processing numbers were near steady.
Average feed costs for finishing cattle and hogs are 25% to 28% higher than the same week last year, according to Sterling Marketing’s weekly calculations.
The average cost of feeding a steer to finish weight was 25% higher for cattle marketed last week and is projected to be 31% higher for cattle placed on feed last week at roughly $600 per head.
Autumn’s fed cattle price rally has pushed average cattle feeding margins through the $200 per head barrier for the first time since well before the pandemic.
Profit margins for both cattle and hog finishing operations saw modest gains last week but also carry significantly higher feed costs than a year ago.
The pendulum continues to swing in cattlemen’s favor as cash prices rally $3 per cwt. Pork producers see improved profit margins with a $7 per cwt. rally.
The highest cash fed cattle prices in seven years provided good profits for cattle sold last week but rising costs are pushing breakevens higher.
Market leverage has shifted dramatically toward ranchers and cattle feeders over the past two months. The combination of rising cattle prices and declining wholesale beef prices has eroded historic packer margins.
Cattle prices moved higher last week but cattle feeding margins remain modest. The supply-demand fundamentals are trending in favor of cattle feeders.
Packer margins remain in the red even as wholesale beef prices rallied $9 per cwt. and cash cattle prices were near steady.
Beef packers saw per head losses nearly double last week as wholesale beef prices tumbled $7 per cwt. lower. Pork processors are also found negative margins and producer margins remain short of breakeven.
Profit margins for cattle feeders increased as cash prices moved higher last week. Pork producers continue operating with negative margins.
Rising wholesale beef prices and declining packing plant utilization are two indicators to watch as the 2023 cattle markets unfold.
Cattle and hog harvest rates were lower last week with higher cash prices paid to farmers and feeders. Margins for both beef and pork packers are trending lower.
Cattle feeders saw average profits of more than $300 per head last week while pork producers found average losses of about $13 per head.
Cash cattle prices declined last week for the first time in a month, but wholesale prices moved higher for the fifth consecutive week. Prices for yearling feeder cattle placed on feed topped $200 per cwt.