Feedlot Margins Surge Past $450

An article on Drovers

With nearly a $4/cwt. drop in the cost of cattle for cattle purchased two weeks ago and slaughtered last week, packer margins showed modest improvement last week to average -$237.64/head compared to -$291.75/head the prior week as calculated by Sterling.

Also, last week did not have the Memorial Day holiday but it did have the strike at Cargill’s Fort Morgan plant, leading to higher utilization of plant capacity, which was estimated at 78.8% for the week compared to 66% the prior week.

Feedlot margins also fared considerably better with Sterling’s estimated for the weekly average at $456.21/head compared to $355.52 the prior week. Sterling estimates the breakeven for cattle placed on feed last week was down sharply from the prior averaging $239.75 against $247.53 the prior week.For the full article click here