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Easter week produced a $3 per cwt. decline in fed cattle prices and a $73 erosion in cattle feeding margins.

Feedyards are as close to breaking even on a cash basis as they’ve been during any point in the past 18 months.

Cattle feeders finally found profitability last week after cattle markets posted a $6 to $7 per cwt. rally.

Cattle feeding margins gained only modestly, despite the fact feeder cattle factored into closeouts were $40 per head less than the previous week.

Cattle feeders generally expected margins to be much better by now. An anticipated spring rally that could have erased a lot of red ink has failed to materialize, leaving feedyard closeouts stuck in neutral with near $200 losses.

It’s the best signal cattle feeders have seen in many months.

For the first time in over a year, average cattle feeding losses are out of triple digits, according to the Sterling Beef Profit Tracker.

The march toward break even for cattle feeders stumbled last week as average losses increased $36 per head, leaving closeouts $113 in the red, according to the Sterling Beef Profit Tracker.

Last week’s $2 per cwt. rally in cash fed cattle prices helped feedyard closeouts improve nearly $100 per head.

Cash fed cattle prices retreated $7.77 per cwt. last week. As a result, closeouts added another $75 of red ink.