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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.

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.

Despite a $2 decline in cash fed cattle prices, feedyard closeouts reported positive mid-winter results while packer margins held firm.

Cattle feeders and beef packers are both experiencing modest mid-winter profits, though both margins were slightly lower on cash prices of $121.

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.

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.

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