Cattle feeding margins improved more than $20 per head last week, while cash fed cattle prices moved $1 to $2 higher at $83 to $84 per hundredweight. Despite the higher cash market, packer margins also improved more than $15 per head as the Choice cut-out price gained $2 per hundredweight. The Sterling Profit Quotient plunged nearly 200 points from the previous week.
The Sterling Beef Profit Tracker is calculated using actual weekly prices for Choice fed steers, feeder steers, feed costs, boxed beef-cutout prices, hide and offal values, and other factors that influence profit margins.
The Sterling Beef Profit Tracker for the week ending 10/16/09:
- Average feedyard margins: -$81.19 per head.
- Average packer margins: -$52.84 per head.
- Sterling Profit Quotient: -258.4
For additional information and a chart about this week’s Sterling Beef Profit Tracker, click here.
The Sterling Beef Profit Tracker is produced by Sterling Marketing Inc. and John Nalivka, president, Vale, Ore., and is published weekly by Drovers/CattleNetwork.