Profit Tracker: Feedyard Margins Decline $80
Greg Henderson, Drovers
April 9, 2019
Cattle feeding margins declined by $80 per head last week as cash prices slumped $1 to $2 per cwt. Industry average profit margins on cattle sold last week were $68 per head, according to the Sterling Beef Profit Tracker.
For the week ending April 5, cash cattle sold for an average of $124.59 per cwt., while the beef cutout closed the week at $225.48 down $1.55 from March 29. Packers saw profits of $154 per head last week, $14 higher than the previous week. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.
A year ago cattle feeders were losing an average of $13 per head. Feeder cattle represent 74% of the cost of finishing a steer compared with 74% a year ago.
Farrow-to-finish pork producers saw their margins improve $4 per head with profits of $40 per head. Lean carcass prices traded at $78.38 per cwt., $1.60 per cwt. higher than the previous week, and $31.18 higher than a month ago. A year ago pork producer margins were negative $21 per head. Pork packer margins averaged a loss of $2 per head last week...
more, including links to Sterling Beef & Pork Profit Trackers