Profit Tracker
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.
A mid-July rally across all regions lifted feedyard margins out of the red for the week ending July 13, and cut into the extreme profit margins packers have enjoyed most of the year.
As expected, beef packer margins jumped wildly higher the week ending Aug. 17, while cattle feeding margins slipped into the red.
Last week’s $2 rally in cash cattle prices helped narrow the spread between feedyard losses and packer profits.
Pork producer margins dropped $15 per head last week due to a $7.59 per cwt. decline in lean carcass prices.
Cattle feeding margins slipped further into the red last week on soft cash prices, while packer margins climbed to extreme heights.
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.
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 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.
Steady improvements in feedayrd margins the past month coupled with declining packer margins has narrowed the spread nearly 50% since late August.
The packer/feeder profit margins spread, historically large a month ago, has shrunk by 50% with gradually improving live cattle prices.
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.
Beef packers saw their margins decline to the lowest level since before the Tyson packing plant fire August 9 as beef cutout prices declined and cash cattle prices increased.