July 1, 2011

 

US cattle feeding margins fall into red

 

 

Cattle feeding margins decreased US$23 per head least week, dipping more into the red in spite of a US$3-5 per hundredweight increase in cash fed cattle prices.

 

Packer margins gained more than US$9 per head for the week, topping the US$50 mark, according to the Sterling Beef Profit Tracker. The Sterling Profit Quotient gained one point for the week, according to estimates developed by Sterling Marketing Inc., Vale, Ore.

 

Fed cattle traded at US$112 last week, with dressed prices at US$178-180. The recent rally in the fed cattle market has added US$6-8 per hundredweight, and initiated ideas the summer lows may already be in place. The average seasonal decline from spring highs to summer lows is 13%, and the 2011 market has already seen a 15% break from the US$124 highs recorded in April.

Video >

Follow Us

FacebookTwitterLinkedIn