Cattle Market Reports and Analysis
Cattle feeders earned a small profit on cattle sold last week, the first positive closeouts in months.
Cattle feeders turned a tidy profit for the second consecutive week.
Normally when profit margins decline $50-plus per head there’s no rejoicing.
Cattle feeders earned average profits of $68 per head last week, $30 per head more than the previous week.
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.
Last week’s $2 per cwt. decline in cash cattle prices left feedyard margins at near breakeven levels.
Feedlot closeouts continue ending on positive notes.
Cattle feeders turned a profit for the eighth consecutive week.
Cattle feeders saw positive margins on closeouts for the ninth consecutive week.
Feedyard profit margins rebounded slightly after last week’s $2 rally in the cash fed cattle market.
Cattle feeding profit margins retreat further with a weaker cash market and limited packer interest.
Average cattle feeding losses totaled $106 per head for the week ending June 21.
The Sterling Beef Profit Tracker reports average cattle feeding closeouts were in the black last week, but with little room to spare.
Cattle feeding margins improved $43 per head last week as cash prices gained nearly $2 per cwt.
Cattle feeding and packer profit margins both declined last week as cash cattle prices were modestly lower.
Cattle feeding and packer profit margins were mostly steady the week ending December 21, with cash prices for fed cattle slightly higher.
As expected, beef packer margins jumped wildly higher the week ending Aug. 17, while cattle feeding margins slipped into the red.
Feedyard margins climbed back into triple digits last week with a $1 to $2 price rally.
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.
Beef packers continued to maintain their leverage on cattle markets heading into the holiday-shortened first week of September.
Last week’s $2 rally in cash cattle prices helped narrow the spread between feedyard losses and packer profits.
Cattle feeding margins slipped further into the red last week on soft cash prices, while packer margins climbed to extreme heights.
Feedyards saw closeouts improve dramatically last week after the cash cattle market posted its third consecutive week of higher prices.
The combination of shrinking packer profits and smaller feedyard losses over the past six weeks has reduced the packer/feeder margin spread by 27%, according to the Sterling Beef Profit Tracker.
Last week’s $1 increase in cash fed cattle prices did little for feedyard profits, but the $6.40 rally in wholesale beef prices added another $25 onto already large packer margins.
Cattle feeders continue to find modest profits on a cash basis despite last week’s $2 per cwt. market retreat.