Feedlot margins take a steep hit

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

Feedlot margins took a $22 hit last week, finishing at $280.55 for the week ending on July 19, according to the Sterling Beef Profit Tracker’s latest report. While the hit may seem steep, feedlot margins are still well over $80 from this time a month ago when feeders were bringing $194.24 per head and losing $123.94 a year ago.

Fed cattle prices are up to $156.26 this week, slightly increasing $0.24 per hundredweight from the previous week’s $1.73 drop. Compared to the $119.00 market price a year ago, fed cattle are bringing more than $37 per hundredweight more. After rallying to $217.32 in the previous week, feeder steers have dropped to $213.46 per hundredweight. The ending price is more than $6 per hundredweight higher than a month ago and $66 more than this time last year. Fed cattle saw a breakeven price of $160.65, down from the $164.37 price in the previous week.

Packer margins saw more modest gains last week, hitting $67.25 per head, compared to $52.35 in the previous week. Beef cutout value remained consistent to the previous week, with the $248.57 price just up a few cents from the previous week, but earning more than the $236.46 market price last month and the $188.25 price this time a year ago.

Farrow-to-finish margins were slightly up by $1 per head last week, hitting $111.27 the week ending July 18, according to the Sterling Pork Profit Tracker. The increase is significantly up from the $91.24 price per head a month ago and $15.55 price this time a year ago. The $132.14 price for lean hogs remains consistent with the previous week’s $132.62.

Pork packer margins are back in the black at $3.11 per head, after dipping to negative $0.52 in the previous week. Last month, pork packers were making $3.87 per head and losing $6.88 this time last year. The pork cutout value continues to increase, reaching $136.11 this week compared to the previous $134.86.

The Sterling Beef Profit Tracker for the week ending July 19:

  • Average feeder margins: $280.55 per head
  • Average beef packer margins: $67.25 per head

The Sterling Pork Profit Tracker for the week ending July 11:

  • Average farrow-to-finish margins: $111.27 per head.
  • Average pork packer margins: $3.11 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 (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left


AG10 Series Silage Defacers

Loosen silage while maintaining a smooth, compacted bunker space resulting in better feed and less waste. This unique tool pierces, ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Leads to Insight