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.

Average feedyard close-outs were printed in black ink last week for the first time in several months after a $3 per cwt. rally in cash cattle prices.

Tyson Foods broke ground on a $300-million dollar meat packaging plant in one of Utah's fastest growing cities on Tuesday.

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 packer/feeder profit margins spread, historically large a month ago, has shrunk by 50% with gradually improving live cattle prices.

Steady improvements in feedayrd margins the past month coupled with declining packer margins has narrowed the spread nearly 50% since late August.

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.