Cattle feeding margins improved modestly on higher cash prices last week. Packer margins declined slightly.
Beef packer profit margins fell to their lowest level in nearly two years last week while cattle feeding margins exceeded triple digits for the second consecutive week.
Closeouts on cattle and hogs marketed last week remain modestly profitable for the sixth consecutive week, according to calculations by Sterling Marketing.
Cattle feeding margins improved $43 per head last week as cash prices gained nearly $2 per cwt.
Feedyard closeouts saw modest improvement last week, but cattle feeders remain frustrated by their inability to push the cash market higher.
Higher fed cattle prices ahead of the Thanksgiving holiday helped lift cattle feeding margins modestly.
Beef packers saw their margins decline to the lowest level since before the Tyson packing plant fire August 9 as beef cutout prices declined and cash cattle prices increased.
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.