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A decline of $5 per cwt in cash fed cattle prices pushed cattle feeding margins $60 per head lower, leaving losses at $120 per head, according to the Sterling Beef Profit Tracker.
Cattle feeders earned a small profit on cattle sold last week, the first positive closeouts in months.
Normally when profit margins decline $50-plus per head there’s no rejoicing.
Cattle feeders earned average profits of $68 per head last week, $30 per head more than the previous week.
The red ink has started to slow down for feedlots and cattle prices have rallied lately, giving beef producers something to be thankful for.
Last week’s market rally helped feedyards erase much of their red ink, but not all.