Average cattle feeding margins for fed cattle sold to packers last week were a positive $173.81 a head, down $32.34, or 15.7%, from $206.15 a week earlier, according to the Sterling Profit Tracker and published in Drovers.
The new average profit level for unhedged feedlots last week also was down $77.51 a head, or 30.8%, from $251.32 a month earlier. It also was down $116.21, or 40.1%, from $290.02 a year earlier.
But fed cattle selling prices will have to remain firm for feedlots to make a profit on calves they placed on feed last week. The Profit Tracker figured an average breakeven price of $114.62 per cwt for these calves, compared with an average breakeven price for finished cattle sold to packers last week at $115.25.
The calculated average breakeven price for cattle placed two weeks ago was $112.16 per cwt, compared with a calculated average breakeven for cattle sold that week of $115.00.
BY THE NUMBERS
The data used to calculate last week’s average feedlot profit margin included a USDA five-area direct choice steer price of $127.80 per cwt, down from $129.88 the previous week but up from $126.64 a month earlier. A year ago, the average five-area fed cattle price was $124.44.
The cost of the feeder cattle that made up last week’s fed cattle sales to packers was figured at $153.84 per cwt, the average Oklahoma City auction price for 750- to 800-pound steers, was up slightly from $153.30 the previous week. The feeder cattle cost for steers sold to packers a month ago was $143.50 per cwt, and the feeder cattle cost used to calculate sales to packers in the same week a year ago was $137.60 per cwt.
The Profit Tracker figured the average cost of those same feeder cattle last week was $151.15 per cwt, compared with the cost for last week’s marketings of $153.84.
The feeder cattle placed two weeks ago cost $146.84 per cwt, compared with the $153.30 cost of those marketed two weeks ago. But the cost of cattle placed a month earlier than last week was $149.39 per cwt, compared with the cost of those marketed that same week of $143.50.
And the cost for 2017 feedlot placements in the same week as last week was $128.75, compared with the cost of the fed cattle marketed that same week of $137.60.
The estimated feed cost for cattle placed on feed last week was $283.07 a head, up from $271.36 for those cattle marketed to packers last week. A week earlier the feed cost for cattle placed on feed was figured at $283.90 a head, compared with $272.18 for the cattle marketed that same week.
Feed costs for cattle placed on feed a month ago were estimated at $279.94 a head, compared with $261.62 for the cattle marketed that week. A year ago, cattle placed on feed were estimated to have a feed cost of $261.79 a head, up from $243.64 for cattle marketed that same week.
CATTLE, BEEF RECAP
Fed cattle sold Wednesday on the Livestock Exchange Video Auction at $126 per cwt.
Cash trading this week was at $126 to $127 per cwt on a live basis, down $1. Dressed-basis trade was steady at $204 to $205.
The USDA’s choice cutout Thursday was up $1.27 per cwt at $222.30, while select was up $0.50 at $215.60. The choice/select spread widened to $6.70 from $5.93 with 95 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Wednesday, was $147.33 per cwt, down $0.61. This compares with Thursday’s Mar settlement of $145.05, down $0.30.