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Packer margins advanced on softer cash cattle prices and gain in the beef cutout prices.

Packer margins have grown to exceptionally high levels in recent weeks, while feedyard profits have eroded.

Feedyard margins climbed back into triple digits last week with a $1 to $2 price rally.

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.

Based on cash sales of $108.77, cattle closeouts lost an average of $90 per head the week ending March 15.

Cattle feeding margins improved $16 per head last week as cash prices inched higher less than $1 per cwt.

Beef packers continued to maintain their leverage on cattle markets heading into the holiday-shortened first week of 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.

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.