Cattle and hog harvest rates were lower last week with higher cash prices paid to farmers and feeders. Margins for both beef and pork packers are trending lower.

Cattle feeders saw average profits of more than $300 per head last week while pork producers found average losses of about $13 per head.

Grilling season set to kick off as both packers and cattle feeders operating with profitable margins. Pork producers continue the struggle to reach profitability.

Packers have navigated through the tightest supplies of the season while maintaining profitability. Now, supplies are anticipated to increase seasonally which could swing more leverage in their favor.

Cash cattle prices declined last week for the first time in a month, but wholesale prices moved higher for the fifth consecutive week. Prices for yearling feeder cattle placed on feed topped $200 per cwt.

If a seasonal price decline develops as anticipated, this year’s starting point for cattle feeders is the best in a decade. Pork producers notch their second week of modest profits.