Feeding margins jump over $200 per head

Cattle feeding margins improved nearly $57 per head last week on higher cash prices, while packer margins were nearly steady. Feeding margins jumped well over $200 per head last week, and packer margins remain well short of the breakeven mark. The Sterling Profit Quotient gained 170 points for the week, according to estimates developed by Sterling Marketing Inc., Vale, Ore.

“Estimates for feedlot feed costs, breakeven prices, and margins are generated based on the cost of a 775- pound feeder steer, and corn prices (Western Kansas) during the week the cattle were placed on feed,” says John Nalivka, Sterling Marketing president.

“The days on feed for those animals and closeout week are then calculated using average data that might be expected for feeding performance, i.e. feed conversion and ADG. Breakevens and margins will vary according to differences in the cost of cattle, cost of feed, and feeding performance,” Nalivka says.

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 March 12:

• Average feedyard margins: $245.00 per head.
• Average packer margins: -$19.20 per head.
• Sterling Profit Quotient: 733.9.

The Sterling Beef Profit Tracker is produced by Sterling Marketing Inc. and John Nalivka, president, Vale, Ore., and is published weekly by Drovers/CattleNetwork.