Profit Tracker: Feedyard Margins Decline $80

Cattle feeding margins declined by $80 per head last week as cash prices slumped $1 to $2 per cwt.
Cattle feeding margins declined by $80 per head last week as cash prices slumped $1 to $2 per cwt.
(Wyatt Bechtel)

Cattle feeding margins declined by $80 per head last week as cash prices slumped $1 to $2 per cwt. Industry average profit margins on cattle sold last week were $68 per head, according to the Sterling Beef Profit Tracker.

For the week ending April 5, cash cattle sold for an average of $124.59 per cwt., while the beef cutout closed the week at $225.48 down $1.55 from March 29. Packers saw profits of $154 per head last week, $14 higher than the previous week. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.

A year ago cattle feeders were losing an average of $13 per head. Feeder cattle represent 74% of the cost of finishing a steer compared with 74% a year ago.

Farrow-to-finish pork producers saw their margins improve $4 per head with profits of $40 per head. Lean carcass prices traded at $78.38 per cwt., $1.60 per cwt. higher than the previous week, and $31.18 higher than a month ago. A year ago pork producer margins were negative $21 per head. Pork packer margins averaged a loss of $2 per head last week.

Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2019 will average $144 per cow. That would be modestly lower compared to the $161 estimated average profit for 2018. Estimated average cow-calf margins were $164 in 2017, $176 in 2016, and $438 per cow in 2015.

For feedyards, Nalivka projects an average profit of $77 per head in 2019, which would be $53 better than the average of $24 per head in 2018. Nalivka expects packer margins to average about $156 per head in 2019, about $14 less than in 2018.

For farrow-to-finish pork producers, Nalivka projects an average loss of $14.60 per head in 2019, as compared with an average profit of $1.35 per head in 2018. Pork packers are projected to earn $21 per head in 2019, about $3 less than the $20 per head profits of 2018.

Related stories:

Profit Tracker: Feedyard Margins Solid

 

Latest News

.
Program Helps Give Calves A Healthy Edge

Purina Animal Nutrition introduces Purina® Plus, an innovative feeder calf program, which aims to help cattle producers supply high-value, low-risk feeder calves to the marketplace.

.
Adding Up Pennies

The “Discovering True Carcass Value Webinar” sponsored by Certified Angus Beef will explore cutout values and how CAB carcasses add value beyond Choice.

Rana Creek Ranch
Glenn Selk: Riding Off Into The Sunset

Oklahoma State University Emeritus Extension Animal Scientist Glenn Selk announces he is handing over publication of future Cow-Calf Newsletters to other OSU beef specialists.

Gearhart Ranch
NCBA Delivers State of the Industry Address

National Cattlemen’s Beef Association spokesmen gave an update on the state of the industry and priority issues in Washington, D.C. that may affect cattlemen during the group’s virtual Winter Reboot conference.

Pilgrim’s Pride Agrees To Price-Fixing Fine

Pilgrim's Pride, the nation's second-largest poultry processor, entered a guilty plea to federal charges of price-fixing and bid-rigging, the Department of Justice said on Tuesday.

Setting Expectations Smooths the Path for Succession Planning with Off-Farm Heirs

At this year’s Top Producer Online Summit, Rena Striegel shared her key tips to make this transition easier for all involved.