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Cattle feeding and packer profit margins both declined last week as cash cattle prices were modestly lower.

Cattle feeding and packer profit margins were mostly steady the week ending December 21, with cash prices for fed cattle slightly higher.

Feedyard margins climbed back into triple digits last week with a $1 to $2 price rally.

Packer margins advanced on softer cash cattle prices and gain in the beef cutout prices.

Packer margins have grown to exceptionally high levels in recent weeks, while feedyard profits have eroded.

Beef packers continued to maintain their leverage on cattle markets heading into the holiday-shortened first week of September.

Gains in cash fed cattle prices did not translate into higher profits for feedyards last week as higher feeder cattle prices were calculated into breakevens.

Feedyards saw closeouts improve dramatically last week after the cash cattle market posted its third consecutive week of higher prices.

Feedyard profit margins rebounded slightly after last week’s $2 rally in the cash fed cattle market.

Cattle feeding profit margins retreat further with a weaker cash market and limited packer interest.