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Calling losses of $193 per head an improvement may be painful, but it’s accurate.

The Sterling Beef Profit Tracker reports average cattle feeding closeouts were in the black last week, but with little room to spare.

Last week’s $2 rally in cash cattle prices helped narrow the spread between feedyard losses and packer profits.

Cattle feeders continue to find modest profits on a cash basis despite last week’s $2 per cwt. market retreat.

Cattle feeding margins jumped $72 per head higher the week ending Jan. 25 as the value of feeder cattle calculated against those closeouts declined $8 per cwt.

Cattle feeders and pork producers continue to experience significant per head losses as market prices trend lower following slaughter and processing challenges from the COVID-19 pandemic.

Cash cattle prices lost another $2 per cwt. last week, a decline of $7 over two weeks. Coupled with higher input costs on feeder cattle, the decline feedyards with an average $22 per head loss last week.

Cash cattle prices stubbornly steady to $1 higher gave a slight boost to feedyard margins and left packer margins nearly unchanged last week.

Sharply lower cash cattle prices erased $100 per head from closeout profit margins last week and left cattle feeders re-evaluating ideas of a spring rally.

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