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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.

Pork producer margins dropped $15 per head last week due to a $7.59 per cwt. decline in lean carcass prices.

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.

Both cattle and hog feeding enterprises continue showing modest losses while packers remain solidly profitable.

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.

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

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.

Last week’s $2 rally in cash cattle prices helped narrow the spread between feedyard losses and packer profits.

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

Improvements in feedlot margins were ever so slight last week due to a $1 gain in cash fed cattle prices. Pork producers saw a $5 per head improvement.