Feedyard
Cattle feeding margins increased $50 per head last week as cash cattle prices improved $5 per cwt.
Despite the decline in feeding margins, feedyard profits remain above $186 per head.
Record cash fed cattle prices last week at $171 - $172 per cwt. boosted cattle feeding margins $22 per head, according to the Sterling Beef Profit Tracker.
Cattle feeding margins declined $52 per head last week despite steady cash prices.
Cattle feeders saw profits climb to $213 per head after slipping to $175 per head the week before.
Profit margins declined just $4 per head last week, but are $9 per head higher than a month ago, according to the Sterling Beef Profit Tracker.
Beef packers saw modest improvement to their long-running negative margins.
Cattle feeding margins took two steps back last week as cash cattle prices hover around what producers hope are the summer lows.
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.
Feedyards are as close to breaking even on a cash basis as they’ve been during any point in the past 18 months.
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.
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.
Last week’s $4-plus rally in cash fed cattle prices cut average feedyard losses in half, leaving the red ink totaling $90 on every animal shipped.
Cattle feeders earned average profits of $68 per head last week, $30 per head more than the previous week.
Cattle feeders saw positive margins on closeouts for the ninth consecutive week.
The Sterling Beef Profit Tracker reports average cattle feeding closeouts were in the black last week, but with little room to spare.
Cash cattle prices held steady during the week ended August 2, but cattle feeding margins improved $12 per head.
Feedyard profit margins rebounded slightly after last week’s $2 rally in the cash fed cattle market.
Cash cattle prices were mostly steady last week, helping reduce cattle feeding losses by $46 per head. Packers maintain their leverage with profits at $275.
Leverage shifting from feedyards to packers as summer begins.
Last week’s $2 rally in cash cattle prices helped narrow the spread between feedyard losses and packer profits.
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.
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.