Profit Tracker: Cattle Margins Closing on $400; Pork Margins Solid

Cattle feeding margins grew significantly last week as the cash market saw an average $3 rally. Beef and pork packers both saw their margins improve with higher cutout values, but beef packer losses remain near $100 per head.

Negotiated cash cattle sold at $189.43 per cwt. the week ending May 18, boosting feedyard margins gained $83 per head for an industry average profit of $375. Meanwhile, beef packers found a $40 per head improvement that left their average losses at $98 per head, according to the Sterling Beef Profit Tracker. That puts the margin spread at $473 per head in favor of the feeder, an increase of $34.

Composite wholesale beef prices posted $4.70 per cwt. gains to close at $302.13 per cwt. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

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