Beef Margins on the Rise, Pork Prices Remain Steady

Negotiated cash cattle decreased $3 the week ending Feb. 8 while feedlot margins increased $55 per head to an industry average of $341.05 per head, according to the Sterling Beef Profit Tracker. Meanwhile, beef packers saw losses increase slightly per head to a loss of $192.10 per head. That puts the packer/feeder margin spread at $533 per head in favor of the feeder.

Cash cattle averaged $207.25 per cwt. the week ending Feb. 8, while Comprehensive Beef Cutout prices posted a $0.83 per cwt. decrease to close at $329.68 per cwt.

Cattle marketed last week carried a total feed cost of $470.34 per head, about $79 more than feed costs for cattle sold the same week a year ago.

Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $271 per cwt., up $10 from a month ago.

The estimated total cost for finishing a steer last week was $2,837 per head, up from last year’s estimate of $2,477 per head.

Fed cattle slaughter totaled an estimated 478,296, down 2,974 head from the same week last year. Packing plant capacity utilization was estimated at 82%, down slightly from 82.6% last year.