Greg Henderson

Greg Henderson is Editorial Director of Drovers.

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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.
Feedyard margins saw only slight improvement last week as direct trade prices held steady.
Losses continue to mount for feedlots.
Cattle feeders earned a small profit on cattle sold last week, the first positive closeouts in months.
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.
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.