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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.

Most analysts expected feedyards to be near breakeven by the time the calendar turned to May. May is here and the underperforming cash fed cattle market has kept feedyards struggling.

The dog days of summer are here for cattle producers as red ink continues seeping into feedlot ledgers.

Cattle feeders turned a tidy profit last week despite a $2 retreat in cash cattle prices.