BEEF
Cattle feeding margins improved by 50% over the past two weeks, and by 38% during the past week.
Last week’s $2 per cwt. rally in cash fed cattle prices helped feedyard closeouts improve nearly $100 per head.
It’s the best signal cattle feeders have seen in many months.
For the first time in over a year, average cattle feeding losses are out of triple digits, according to the Sterling Beef Profit Tracker.
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.
Cattle feeding profits declined $20vper head last week, yet closeouts remained $11 in the black.
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.
The dog days of summer are here for cattle producers as red ink continues seeping into feedlot ledgers.
Last week’s $2 per cwt cash cattle rally lifted feedyard margins to breakeven.
Last week’s $1 per cwt retreat in cash cattle prices took feedyard margins only modestly lower.
A $1 decline in average fed cattle prices and a $25 per head increase in the cost of feeder cattle pushed cattle feeding losses to $52 per head last week.
Cattle feeding margins slipped further into the red last week.
A decline of $5 per cwt in cash fed cattle prices pushed cattle feeding margins $60 per head lower, leaving losses at $120 per head, according to the Sterling Beef Profit Tracker.
With cash cattle prices tumbling another $4 per cwt lower, cattle feeding margins fell accordingly.
Last week’s $4-plus rally in cash fed cattle prices cut average feedyard losses in half, leaving the red ink totaling $90 on every animal shipped.
Feedyard margins saw only slight improvement last week as direct trade prices held steady.
The red ink has started to slow down for feedlots and cattle prices have rallied lately, giving beef producers something to be thankful for.
Normally when profit margins decline $50-plus per head there’s no rejoicing.
Feedyard margins declined $28 per head last week to total an average loss of $70 per head, according to the Sterling Beef Profit Tracker.
Feedyard margins dropped another $20 last week to total an average loss of $90 per head, according to the Sterling Beef Profit Tracker.
Calling losses of $193 per head an improvement may be painful, but it’s accurate.
