Search - Drovers

As expected, beef packer margins jumped wildly higher the week ending Aug. 17, while cattle feeding margins slipped into the red.

Cattle feeding margins slipped further into the red last week on soft cash prices, while packer margins climbed to extreme heights.

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

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.

Cattle feeding profit margins exceeded beef packer margins last week for the first time in more than two years as cash cattle prices have increased 20% since September.

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.

Despite an average $1 decline in cash fed cattle prices last week, cattle feeding margins remained solidly profitable on a cash basis.

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