A $6-plus per cwt. gain in cash cattle prices produced a 20% improvement in feeding margins. It was a $150 per head improvement, but still feedyards lost $546 on every animal shipped last week, according to Sterling Marketing, Inc., Vale, Ore.
USDA’s reported 5-area cash price last week was $123.48 per cwt., $6.67 per cwt. higher than the week before, yet $42 per cwt. short of breakeven.
Feeder cattle prices factored into Sterling Marketing’s sample closeout held firm last week at $147 per cwt., but that price is $26 per cwt. lower than a month ago, and $75 per cwt. lower than a year ago. Yearling steers factored into last week’s placements at $563 per head less.
Beef packer margins declined nearly $41 per head, resulting in average profits of $26 on every animal processed. Packer margins are about $6 per head better than last month.
A month ago cattle feeders were losing $562 per head, while a year ago losses were pegged at $23 per head, according to Sterling Marketing. Feeder cattle represent 79% of the cost of finishing a steer.
A month ago beef packers were earning $20 for every animal processed, while a year ago packers were losing $60, Sterling Marketing estimates.