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Most analysts expected feedyards to be near breakeven by the time the calendar turned to May. May is here and the underperforming cash fed cattle market has kept feedyards struggling.

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

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

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

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.

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.

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

Cattle feeding margins improved $16 per head last week as cash prices inched higher less than $1 per cwt.