Fed cattle prices continue to decline

 Resize text         Printer-friendly version of this article Printer-friendly version of this article

Feedlot margins dropped significantly last week, from $284.85 per head down to $197.88 per head for the week ending August 16, says the Sterling Beef Profit Tracker’s latest report. The two-week skid came after margins topped out at $381.70 per head for the week ending August 2. The decline is well below the $280.55 per head price from a month ago, but significantly higher than this time last year when feedlot margins were losing $41.58 per head.

Fed cattle prices continue to decline, dropping to $154.69 per hundredweight last week. The $5.39 per hundredweight decline is below the $156.26 per hundredweight price last month and when they were bringing $123.00 per hundredweight this time a year ago. Feeder steer prices also slightly dipped last week, moving from $223.00 per hundredweight to $217.80. A month ago, fed cattle were bringing $213.46 per hundredweight, well above the $154.42 per hundredweight this time last year.

Packers continue to gain progress with a $2.23 per head increase from the previous week, topping out at $112.22 per head last week. This is nearly double from a month ago when packers were making $68.66 per head and $9.44 per head a year ago. Beef cutout prices were down $5.11 from the previous week, settling at $255.63. This is still higher than last month’s value of $248.57 and a year ago this time of $190.00.

Farrow-to-finish margins continue to decline, dropping from $77.80 per head in the previous week to $61.74 per head for the week ending August 15, according to the Sterling Pork Profit Tracker. This is a $49.53 per head decline from this time a month ago when farrow-to-finish margins were bringing $111.27 per head. While the amount of decline is large, it is much higher from a year ago when they were only bringing $25.48 per head. Lean hogs also continue to drop, moving from $117.53 in the previous week to $109.97 last week.

After making significant increases to $13.95 per head in the previous week, pork packer margins are back down, settling at $7.23 per head last week. At this time a month ago, packers were making $3.11 per head and $1.34 per head a year ago. Pork cutouts continue to decline, dropping from $126.70 in the previous week to $116.00 last week. This continual drop has lowered cutouts from $136.11 a month ago, however they are still above the $103.57 value from this time last year.

The Sterling Beef Profit Tracker for the week ending August 16:

  • Average feeder margins: $180.42 per head
  • Average beef packer margins: $75.07 per head

The Sterling Pork Profit Tracker for the week ending Aug15:

  • Average farrow-to-finish margins: $69.07 per head.
  • Average pork packer margins: $6.40 per head.

The Sterling Beef and Pork Profit Trackers are produced by Sterling Marketing Inc. and John Nalivka, president, Vale, Ore., and are published weekly by Drovers/CattleNetwork, and PorkNetwork.



Comments (1) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left

Carl Cook    
Stillwater, Oklahoma  |  August, 21, 2014 at 01:30 PM

I need a small book that covers the markets for feed lots and packers....... 1. What are margins for packers and feed lots 2. How do you employ puts and buys in futures 3. I am a cow-calf operator. Recently finised going through OK Steer feed out and learned a little but not enough. Do you think taking a subscription to the Drover could answer some of my questions....


Bobcat 3650

The Bobcat 3650 utility vehicle offers heat and air conditioning, a hydrostatic drive and the capacity to operate front-mounted PTO ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Leads to Insight