Hogs - General
The dog days of summer are here for cattle producers as red ink continues seeping into feedlot ledgers.
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.
Feedyard margins improved last week despite a $3 per cwt. decline in cash cattle prices.
Cattle feeders earned a small profit on cattle sold last week, the first positive closeouts in months.
Cattle feeders turned a tidy profit for the second consecutive week.
Normally when profit margins decline $50-plus per head there’s no rejoicing.
Cattle feeders earned average profits of $68 per head last week, $30 per head more than the previous week.
The red ink has started to slow down for feedlots and cattle prices have rallied lately, giving beef producers something to be thankful for.
Last week’s market rally helped feedyards erase much of their red ink, but not all.
Feedyard margins saw only slight improvement last week as direct trade prices held steady.
Last week’s $2 per cwt. decline in cash cattle prices left feedyard margins at near breakeven levels.
Cowboys and packers finished 2016 on a high note, maintaining per head profits north of $100 for the week ended Dec. 30.
Feedyard margins declined $28 per head last week to total an average loss of $70 per head, according to the Sterling Beef Profit Tracker.
Feedyard margins dropped another $20 last week to total an average loss of $90 per head, according to the Sterling Beef Profit Tracker.
Calling losses of $193 per head an improvement may be painful, but it’s accurate.
Feedlot closeouts continue ending on positive notes.
Cattle feeders turned a profit for the eighth consecutive week.
Cattle feeders saw positive margins on closeouts for the ninth consecutive week.
Last week’s $3 per cwt rally in cash fed cattle prices pulled feeding margins out of the red and cut beef packer profit margins by 20%.
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.
Cattle feeding profit margins retreat further with a weaker cash market and limited packer interest.
Average cattle feeding losses totaled $106 per head for the week ending June 21.
Leverage shifting from feedyards to packers as summer begins.
Cattle feeding margins improved last week after a $1 boost to cash fed cattle prices.