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The cash market for fed cattle last week gave some relief to feeders and overall market sentiment in the wake of the prior week’s $5/cwt. decline.

America’s cattle feeders earned an average of $323 on a cash basis for every steer and heifer they sent to market during the first eight months of 2017.

A $1 per cwt rally helped boost cattle feeding profits marginally last week while packers lost a little off their large margins.

Packer margins improved $55 per head last week as Choice beef cutout values gained nearly $4 per cwt and cash cattle prices declined $1 per cwt.

Losses continued to grow for feedyards and the spread between feeder losses and packer profits only widened with a $1.50 per cwt. decline in cash cattle prices last week.

Cattle feeding losses averaged $83 per head last week, while packers recorded $168 per head profits, according to the Sterling Beef Profit Tracker.

Beef packer continued with a stranglehold on cattle markets last week, buying a few cattle to fill their needs at lower money and keeping operating margins historically high.

While cash cattle prices slipped only modestly, cattle feeders saw margins erode by $86 per head, falling from an average profit of $38 two weeks ago to an average loss of $49 per head last week.

Billions in breaks for energy sought in ‘tax extenders’ bill.

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