Beef Packer Margins Rebound

Season 2 Episode 99

It’s the Ranch It Up Radio Show Herd It Here Weekly Report! A 3-minute look at cattle markets, reports, news info, or anything that has to do with those of us who live at the end of dirt roads. Join Jeff 'Tigger' Erhardt, the Boss Lady Rebecca Wanner aka 'BEC' by subscribing on your favorite podcasting app or on the Ranch It Up Radio Show YouTube Channel.

Beef Packer Margins Rebound To Record U.S. Beef Packer Margins Turn Positive After Labor Day as Wholesale Prices Hit Record Highs

Beef packer margins in the U.S. rebounded into positive territory during the first week after Labor Day, fueled by record-setting wholesale beef prices, according to the latest Beef Profit Tracker from Drovers.

U.S. Beef Packer Margins Turn Positive After Labor Day as Wholesale Prices Hit Record Highs

For the week ending September 6, the Comprehensive Cutout Value climbed $5 from the prior week to its highest level on record. With fed cattle priced at $244.44/cwt, packer margins averaged an estimated $38.05 per head, a sharp turnaround from the $9.50/head loss posted the week before.

Feedlots Report Strong Cattle Feeding Margins

Feedlot profitability also strengthened. Average 5-Area Direct Steers traded at $242.62/cwt, well above the estimated breakeven of $192.35/cwt. That left calculated feeding margins at an impressive $703.74/head, compared to $662.03 the previous week and only $90.42/head during the same period in 2023.

Beef Production Declines, Margins Improve

Even with lower cattle slaughter numbers — 487,000 head versus 565,000 head the prior week — packer and feedlot profits improved. Fed plant capacity utilization dropped to 67.8% from 78.6%, while cow plant utilization fell to 53%.

Outlook: Tight Supply and Strong Demand Support Fall Profits

The data underscores a tightened beef supply chain paired with strong consumer demand, setting the stage for continued profitability for both cattle feeders and beef packers heading into fall 2025.

REFERENCE: https://meatingplace.com/beef-packer-margins-rebound-to-record/

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Podcast Episode Details

Beef Packer Margins Rebound