Profit Tracker

Profit Tracker: Cash Cattle Highest in Seven Years

Fri, 07 Jul 2023 19:15:38 GMT

The pendulum continues to swing in cattlemen’s favor and cash cattle prices hit their highest point in seven years last week. Cash cattle hit $150.53 per cwt., generally $3 higher than the previous week, and average closeouts were $158 per head in the black the week of Oct. 22, according to the Sterling Beef Profit Tracker .

Packer margins averaged $16 per head last week, a recovery after the previous week saw packers losing $15 per head. Packer margins a year ago were calculated at $659 per head.

Average breakeven for cattle placed on feed last week was $151 per cwt., which is up from the $139 calculated breakeven for cattle marketed last week. Cattle placed on feed a year ago this week had a breakeven of $125 per cwt.

The average cost of feeding a steer to finish weight was 12% higher for cattle marketed last week and is projected to be 17% higher for cattle placed on feed last week, according to the Profit Tracker. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Oregon.

Last week’s Choice beef cutout averaged $247 per cwt., about $6 per cwt. higher than the previous week and down $31 per cwt. (11%) from the same week a year ago.

Feed costs for cattle marketed last week averaged $604 per head, up $88 per head from last year. The estimated total cost for finishing a steer last week was $1,949 per head.

Cattle slaughter totaled an estimated 673,000 head, up 12,000 head from the same week last year. Packing plant capacity utilization was estimated at 90.8% compared to 89.0% the previous week and 89.3% last year.

Farrow to finish hog producers found profits of $18 per head last week, up $12 per head from the previous week and up $39 per head from last year’s $21 per head losses. Lean carcass prices averaged $99.38 per cwt., up $7.10 per cwt. from the previous week and up $29.72 per cwt. from last year.

Pork packers lost an average of $1 per head, down up about $7 per head from the previous week. A year ago pork packers saw profits of $70 per head. Hog slaughter was estimated at 2.571 million head, down 26,000 head from the previous week and down 35,000 head from last year.

Pork packer capacity utilization was estimated at 95.4% compared to 94.5% the previous week and 96.9% 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: Feedings Costs 25% Higher YOY

Fri, 07 Jul 2023 19:15:38 GMT

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, according to the Sterling Beef Profit Tracker .

For the week ending August 27, cattle feeders saw average profits of $138 per head as the 5-area fed steer price averaged $145.61 per cwt. That price was 15% higher than the same week a year ago. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Oregon.

Estimated beef packer margins for the week ending August 27 were $126 per head, down $24 per head from the previous week and down 89% from estimated margins a year ago that exceeded $1,100 per head. Last week’s Choice beef cutout averaged $259.45 per cwt., about $1 lower than the previous week and down $83 per cwt. (24%) from the same week a year ago.

Feed costs for the cattle marketed last week averaged $561 per head, down $14 from the previous week but up $121 per head from last year. The estimated total cost for finishing a steer last week was $1,900 per head, up 16% from last year’s estimate of $1,644 per head.

Cattle slaughter totaled an estimated 678,000 up 26,000 head (4%) from the same week last year. Packing plant capacity utilization was estimated at 92.5% compared to 90.2% the previous week and 88.7% last year.

Farrow-to-finish hog producers found profits of $75 per head last week, down $10 per head from the previous week but up $28 per head (58%) from last year. Lean carcass prices averaged $127.15 per cwt., down $3 per cwt. from the previous week but up $26 from last year (26%).

Pork packers saw losses of an estimated $51 per head, which is steady with the previous week but $68 per head less than the $16 profit per head from last year. Hog slaughter was estimated at 2.393 million head, down 2,000 head from the previous week and down 38,000 head (2%) from last year.

Pork packer capacity utilization was estimated at 88.8% compared to 88.9% the previous week and 90.4% 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: Packers Can’t Stop The Bleeding

Fri, 07 Jul 2023 19:15:35 GMT

Beef packers saw per head losses nearly double last week as wholesale beef prices tumbled $7 per cwt. lower. The weekly average price for market-ready cattle was slightly lower as packers secured some early-week trades at lower money. Prices rose throughout the week, however, as cattle feeders dug in their heels.

Average cattle feeding margins were estimated at $180 per head the week ending Dec. 10 as cash prices averaged $156.38 per cwt., or $16.78 per cwt. higher than a year ago. Beef packer margins were estimated at a negative $141, according to the Sterling Beef Profit Tracker . That’s the largest weekly packer loss in seven years. That compares with packer profits of $297 per head the same week a year ago.

Last week’s Choice beef cutout averaged $242.50 per cwt., down $6.85 from the previous week and down $22.42 per cwt. from a year ago.

Costs associated with finishing cattle have increased dramatically since April. The cattle sold last week carried a total feed cost of $552 per head, which is 14% higher than the $472 feed costs for cattle sold the same week a year ago. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Oregon.

Cattle marketed last week had a breakeven of $143.49 per cwt., while cattle placed on feed last week have a breakeven of $151.70 per cwt. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $177.75 per cwt., and feed costs of $566 per head. The feeder steer price is 7% higher than last year.

The estimated total cost for finishing a steer last week was $2,008 per head, up 12% from last year’s estimate of $1,764 per head.

Cattle slaughter totaled an estimated 652,000 head, about 15,000 head less than the same week last year. Packing plant capacity utilization was estimated at 90.0% compared to 89.8% last year.

Farrow-to-finish hog producers saw losses of $1 per head last week, about a 50-cent per head improvement over the previous week, and up $20 per head compared to last year’s $21 per head losses. Lean carcass prices averaged $86.13 per cwt., down $1.93 per cwt. from the previous week and up $19.89 from last year (23%).

Pork packers saw losses of about $6 per head, or $2 per head less than the previous week. Last year pork packers saw profits of $32 per head. Hog slaughter was estimated at 2.572 million head, down 18,000 head from the previous week and down 4,000 head from last year.

Pork packer capacity utilization was estimated at 96.2% compared to 95.7% 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 Packer Losses Largest since 2017

Fri, 07 Jul 2023 19:15:35 GMT

The pendulum continues swinging toward cattle feeders as cash prices jumped $3 last week and left packers with their largest negative margins in nearly six years. Average cattle feeding margins were estimated at $165 per head the week ending Nov. 26, 2022, according to the Sterling Beef Profit Tracker . Those average margins were up $41 per head from the previous week.

Beef packer margins were estimated at a $28 per head loss, the largest per head loss for packers since Jan. 2017, according to Sterling’s database. That compares with packer profits of $488 per head the same week a year ago.

Last week’s Choice beef cutout averaged $251.23 per cwt., down $1.86 from the previous week and down $18.81 per cwt. from a year ago.

Costs associated with finishing cattle have increased dramatically since April. The cattle sold last week carried a total feed cost of $597 per head, which is 23% higher than the $465 feed costs for cattle sold the same week a year ago. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Oregon.

Cattle marketed last week had a breakeven of $144.63 per cwt., while cattle placed on feed last week have a breakeven of $151.69 per cwt. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $174.62 per cwt., and feed costs of $590 per head. The feeder steer price is 13% higher than last year.

The estimated total cost for finishing a steer last week was $2,024 per head, up 15% from last year’s estimate of $1,725 per head.

Cattle slaughter totaled an estimated 581,000 674,000 head, about 14,000 head more than the same week last year. Packing plant capacity utilization was estimated at 78.1% compared to 90.6% the previous week and 77.9% last year.

Farrow-to-finish hog producers found profits of $8 per head last week, up about $6 per head from the previous week, and up $52 per head compared to last year’s $44 per head losses. Lean carcass prices averaged $88.20 per cwt., up $0.47 per cwt. from the previous week and up $30.77 from last year (35%).

Pork packers saw losses of about $3 per head, or $10 per head less than the previous week and $53 lower than the same week a year ago. Hog slaughter was estimated at 2.223 million head, down 376,000 head from the previous week and down 31,000 head from last year.

Pork packer capacity utilization was estimated at 82.7% compared to 96.7% the previous week and 84.3% 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.)