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Cattle feeding profits improved with $1 per cwt. higher cash prices and lower feeder cattle prices calculated against last week’s closeouts.

Packer margins improved $55 per head last week as Choice beef cutout values gained nearly $4 per cwt and cash cattle prices declined $1 per cwt.

A $1 per cwt rally helped boost cattle feeding profits marginally last week while packers lost a little off their large margins.

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.

The cash market for fed cattle last week gave some relief to feeders and overall market sentiment in the wake of the prior week’s $5/cwt. decline.

Losses continued to grow for feedyards and the spread between feeder losses and packer profits only widened with a $1.50 per cwt. decline in cash cattle prices last week.

Beef packer continued with a stranglehold on cattle markets last week, buying a few cattle to fill their needs at lower money and keeping operating margins historically high.

Billions in breaks for energy sought in ‘tax extenders’ bill.

The many moving pieces in grid marketing make it a bit of a chess game, but learning to play opens more opportunity for big wins. Ranchers can target cow herd genetics toward factors driving value in the supply chain.

Beginning Monday, USDA’s Market News will issue two new reports based on Mandatory Livestock Reporting data to provide further insight into formula cattle trades and help promote fair and competitive markets.