Profit Tracker: Feeding Margins Exceed $170

January 25, 2017 05:30 PM
 
bt_rotator_feedlot_steer_3

January’s fed cattle rally has helped boost cattle feeding margins to $172 per head, according to the Sterling Beef Profit Tracker. Last week’s 5-area direct price of $122 represented a $3 increase, and helped secure the ninth consecutive week of average feedyard profitability.

Packers had their worst profit week in months, with margins declining $29 per head to $19. Much of that decline was due to higher fed cattle costs and a $1 per cwt drop in the beef cutout, which ended the week of Jan. 13 at $190.97.

The total cost of finishing a steer last week was $1,525, compared with $1,537 the week before and $2,068 last year. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

A month ago cattle feeders were earning $136 per head, while a year ago losses were calculated at $202 per head. Feeder cattle represent 76% of the cost of finishing a steer, compared to 80% last year.

Farrow-to-finish pork producers earned $16 per hog last week, about $6 more than the week before. A month ago farrow-to-finish pork producers lost about $8 per head.

Pork packers saw their margins decline $6 per head to $22. Negotiated prices for lean hogs were $65.19 per cwt. last week, about $2.76 per cwt. higher. Cash prices for fed cattle are $12 per cwt. lower than last year and prices for lean hogs are about $8 higher than last year.

Sterling Marketing president John Nalivka projects average cash profit margins for cow-calf producers at $144 per cow for 2016. In 2017, Nalivka projects cow-calf profits of $43 per cow. Estimated average cow-calf margins were $432 per cow in 2015.

Back to news


Million Dollar Wildfire Relief Challenge

Click here to learn more about the Million Dollar Wildfire Relief Challenge, and see how you can help in the rebuilding effort.


 

RELATED CONTENT

Comments

 
Spell Check

No comments have been posted to this News Article

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by Barchart.com
brought-by
Close