After reaching historic levels earlier this fall, beef packer margins have experienced steady declines over the past month as cattle prices have increased.
Feedyard closeouts improved modestly last week with a $1 increase in cash fed cattle prices. Packer margins increased on the extended rally to the beef cutout price.
Last week’s $1 increase in cash fed cattle prices did little for feedyard profits, but the $6.40 rally in wholesale beef prices added another $25 onto already large packer margins.
Workplace injuries in American meat and poultry processing and packing facilities has reached an all-time low, according to the Bureau of Labor Statistics.
The Center for Consumer Freedom (CCF) placed a full-page ad in The New York Times that puts the unappetizing ingredients of “plant-based meats” on display.
The combination of shrinking packer profits and smaller feedyard losses over the past six weeks has reduced the packer/feeder margin spread by 27%, according to the Sterling Beef Profit Tracker.