Beef Profit Margins Narrow

Cattle feeding margins narrowed considerably to kick off February, with average profits coming in at $15/head, a significant $45 decline from the previous week. With average cash prices of $154.86/cwt (a drop of $0.57/cwt) and feed costs that increased by $36/head, declines were inevitable.

Meanwhile, beef packers found $84/head profits last week, down $24 from the previous week and $471 lower than the same week one year ago. The estimated cost to finish a steer last week was $2,152/head, up 18% from last year. Farrow-to-finish hog producers saw losses of $31/head, steady with the previous week, while pork producers saw positive margins of about $19/head.

Read more on tightening beef cattle margins and profitability here.