Cash fed cattle prices ended last week $10 per cwt. lower than last year while the beef cutout closed $16 higher than the same week a year ago. The result? Packer margins $314 per head more than last year.
Cattle feeding profits improved for the third consecutive week as cash fed cattle prices gained $1 per cwt.
Feedlot closeouts averaged a profit of $22 per head last week, while packer margins remain above $200.
Cattle feeding profits improved with $1 per cwt. higher cash prices and lower feeder cattle prices calculated against last week's closeouts.
The fed cattle market has traded in a tight range at about $111 per cwt for the past six weeks, which results in cattle feeders losing an average of $50 to $60 per head.
Cattle feeding losses averaged $83 per head last week, while packers recorded $168 per head profits, according to the Sterling Beef Profit Tracker.
While cash cattle prices slipped only modestly, cattle feeders saw margins erode by $86 per head, falling from an average profit of $38 two weeks ago to an average loss of $49 per head last week.
A $1 per cwt rally helped boost cattle feeding profits marginally last week while packers lost a little off their large margins.