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.
Beef packers are enjoying historic profit levels with robust consumer demand and strong beef cutout values.
Packer margins have grown to exceptionally high levels in recent weeks, while feedyard profits have eroded.
Packer margins advanced on softer cash cattle prices and gain in the beef cutout prices.
Beef cutout prices jumped $7.22 per cwt. last week, boosting packer profits $40 per head.
Feedyard margins climbed back into triple digits last week with a $1 to $2 price rally.
Feedyard closeouts revealed profits of $92 per head last week after two weeks of losses.
Remaining cattle feeding profits were erased last week with a $4 decline in the cash market.