Profit Tracker: Cattle Feeding Margins Inch Higher

 

Greg Henderson, Drovers

August 8, 2019

 

Cattle feeding margins climbed $12 higher to total an average of $61 per head for the week ending August 2. The increase came despite the fact average cash cattle prices were mostly steady at $115. Packer margins improved $5 per head at $163, according to the Sterling Beef Profit Tracker.

 

(Note: The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs.)

 

A year ago cattle feeders were losing an average of $53 per head on cash prices of $113. Feeder cattle represent 71% of the cost of finishing a steer compared to 73% a year ago.

 

The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.

 

Farrow-to-finish pork producers saw their margins decline $9 per head with profits of $42. Lean carcass prices traded at $80.38 per cwt., $4.34 per cwt. higher than the previous week. A year ago pork producer margins were negative $3 per head. Pork packers saw average profits of $4 per head, $18 better than the previous week.

 

Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2019 will average $138 per cow...

 

more, including links to Sterling Beef & Pork Profit Trackers

https://www.drovers.com/article/profit-tracker-cattle-feeding-margins-inch-higher