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Easter week produced a $3 per cwt. decline in fed cattle prices and a $73 erosion in cattle feeding margins.

Cattle feeding margins gained only modestly, despite the fact feeder cattle factored into closeouts were $40 per head less than the previous week.

Cattle feeders generally expected margins to be much better by now. An anticipated spring rally that could have erased a lot of red ink has failed to materialize, leaving feedyard closeouts stuck in neutral with near $200 losses.

Cash fed cattle prices retreated $7.77 per cwt. last week. As a result, closeouts added another $75 of red ink.

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.

Feedyards are as close to breaking even on a cash basis as they’ve been during any point in the past 18 months.

Cattle feeders finally found profitability last week after cattle markets posted a $6 to $7 per cwt. rally.

Cattle feeders turned a tidy profit last week despite a $2 retreat in cash cattle prices.

Feedyard margins remained about $150 per head last week despite a $6 per cwt. retreat in cash cattle prices.

A cash market rally helped add $62 per head to feedyard margins last week, ending with total average profits of $212 per head, according to the Sterling Beef Profit Tracker.