Beef packer margins rebound

 After a tough summer when beef packers bid away profits to buy a reduced supply of cattle, the Beef Profit Tracker reports margins in the United States turned positive after Labour Day.

The good news was fueled by stronger wholesale prices.

For the week ending Sept. 6, the Comprehensive Cutout averaged $409.20 per hundredweight, up $5 from the previous week and the highest on record. As recently as mid-August packers were losing $9.50 a head, but after Labour Day made $38 a head..

Feedlots also saw stronger profits. Average five-Area Direct Steers traded at $242.62 per hundredweight; breakeven was estimated at $192.35.

That yielded feeding margins at $703.74 per head, up from $662.03 the previous week and $90.42 the same week a year ago.