For the week ending November 1, negotiated cash cattle prices rose by $0.25 per cwt, with feedlot margins declining by $67 to an industry average of $129.04 per head, as reported by the Sterling Beef Profit Tracker. Beef packers’ margins also fell, with a decrease of $32 per head, resulting in a gain of $15.54 per head. The packer/feeder margin spread stands at $144 per head, favoring the feeder.
During this period, cash cattle averaged $189.79 per cwt, while Comprehensive Beef Cutout prices increased by $0.73 per cwt to reach $316.14 per cwt. Feed costs for marketed cattle averaged $466.23 per head, approximately $16 higher than the same week last year. Last week’s placements for 750-800 lb. feeder steers had a purchase price of $255.78 per cwt, reflecting a $9 per cwt decrease from the previous month.
The estimated total cost of finishing a steer last week reached $2,714 per head, up from $2,475 per head in the previous year. Fed cattle slaughter was approximately 494,460 head, an increase of 3,844 head compared to the same week last year. Packing plant capacity utilization was estimated at 84.8%, compared to 83.8% in the same period last year.
The Sterling Beef Profit Tracker utilizes weekly averages to estimate feedyard and packer margins, focusing on average cash costs of feeding cattle without adjustments for risk management practices. Sterling Marketing, an independent consulting firm, provides these benchmarks for industry tracking purposes.
