Cattle feeding profits more than doubled last week, a bounce due
to a $3 rally in cash fed cattle prices as 2017 came to a close. Average
closeouts showed profits of $150 per head, up from $65 the previous week,
according to the Sterling Beef Profit Tracker.
The 5-area direct cash price was $123 per cwt., while break
evens declined $3 to $112.08. The cost of feeder cattle calculated against last
week’s marketings declined $4.74 per cwt., while feed costs declined $3 per
head, according to the weekly average calculations.
Beef packer margins increased $10 per head to average $52. The
beef cutout increased $2.76 per cwt. to $200.34. The Beef and Pork Profit
Trackers are calculated by Sterling Marketing Inc., Vale, Ore.
The cost of finishing a steer last week was calculated at $1,560
per head, which is $79 more than the $1,481 a year ago. A month ago cattle
feeders were earning $131 per head, while a year ago profits were calculated at
$157 per head. Feeder cattle represent 74% of the cost of finishing a steer,
compared to 75% last year.