Packer Losses Mount; Pork Margins Solid

Negotiated cash cattle sold $1 lower last week and feedyard margins slipped $24 per head for an industry average profit of $188. Meanwhile, beef packers saw their margins decline another $3 per head to average losses of $214 per head, according to the Sterling Beef Profit Tracker. That puts the margin spread at $402 per head in favor of the feeder.

Cash cattle averaged $183.14 per cwt. the week ending Apr. 20, while composite wholesale beef prices posted $3.15 per cwt. losses to close at $285.48 per cwt. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $370 per head, down about $5 per head from the previous week, and about $211 less than feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $169.70 per cwt., while cattle placed on feed last week have a breakeven of $178.20 per cwt., which is up about $5 per cwt. from the previous week. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $249 per cwt., or $6 per cwt. less than a month ago. The feeder steer price is 20% higher than last year.