# Profit Tracker: Packers Struggle With Capacity, Margins Deep in the Red - Drovers

> Sterling's weekly profit tracker shows negotiated cash cattle fell $3 to an average of $199.87/cwt in the week ending Feb. 22, and the Comprehensive Beef Cutout dropped $6.84 to $317.56/cwt. Beef packers lost $195.60 per head while feedlot margins fell $41 to $237.36, and pork packers lost $1.41 per head.

- Date: 2025-02-27 · published 2025-02-27T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/26197-profit-tracker-packers-struggle-with-capacity-margins-deep-in-the-red-drovers
- Commodities: [Live Cattle](https://feedsoft.ai/c/LCATTLE.md), [Lean Hogs](https://feedsoft.ai/c/HOGS.md)

## Why it matters

Packer losses and weak cutout values reduce the packers' ability to pay for cattle, pressuring fed cattle prices. Heavy feed costs and lower slaughter capacity use (77.8%) also weigh on the supply chain.

## Read by commodity

- HOGS: neutral
- LCATTLE: bearish ▼

## Sources

- drovers.com: https://www.drovers.com/markets/profit-tracker/profit-tracker-packers-struggle-capacity-margins-deep-red

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.