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Calculated breakeven prices for cattle shipped from feedyards last week were $170.12, according to Sterling Marketing, Vale, Ore.
Uncharted territory. That’s where America’s cattle feeding industry finds itself as fed cattle lose $611 per head.
Another miserable week left many in the cattle feeding business on the brink of financial ruin.
A $6-plus per cwt. gain in cash cattle prices produced a 20% improvement in feeding margins.
Cattle feeding margins improved by 50% over the past two weeks, and by 38% during the past week.
Last week’s $3 per cwt. decline in cash fed cattle prices dealt another cruel blow to feedyard closeouts.
Feedyard closeouts saw a $100 per head improvement last week, bringing losses under the $300 per head mark for the first time in months.
After slicing more than 50% off the monstrous losses found a month ago, cattle feeders saw their margins slip $43 per further into the red last week with $2 per cwt. lower bids.
Easter week produced a $3 per cwt. decline in fed cattle prices and a $73 erosion in cattle feeding margins.
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.
Cattle feeding profits declined $20vper head last week, yet closeouts remained $11 in the black.
Feedyard margins remained about $150 per head last week despite a $6 per cwt. retreat in cash cattle prices.
A cash market rally helped add $62 per head to feedyard margins last week, ending with total average profits of $212 per head, according to the Sterling Beef Profit Tracker.
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.
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.
Cattle feeders turned a tidy profit last week despite a $2 retreat in cash cattle prices.
Cattle feeding margins eroded $62 per head last week, falling $35 into negative territory.
With cash cattle prices tumbling another $4 per cwt lower, cattle feeding margins fell accordingly.
Last week’s $2 per cwt cash cattle rally lifted feedyard margins to breakeven.
Last week’s $1 per cwt retreat in cash cattle prices took feedyard margins only modestly lower.
A $1 decline in average fed cattle prices and a $25 per head increase in the cost of feeder cattle pushed cattle feeding losses to $52 per head last week.
Cattle feeding margins slipped further into the red last week.