After a mostly sluggish April, market-ready fed cattle saw a solid rally in the North and steady money in the South. Futures markets began to look past the psychologically bearish H5N1 virus news.
Packers resisted paying higher money last week right up to happy hour on Friday. The feet-dragging suggested their profit margins would look bleak when the dust settled.
Cattle feeders lost an average of $13 per head last week, breaking a string of 46 consecutive weeks of profitability dating back to November of last year.
Average feedyard margins declined $18 per head last week, settling at $26. With average margins that close to breakeven, many cattle sold last week undoubtedly lost money.
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.
There are few losers in the cattle market right now. From packers all the way down to cow-calf producers, current prices this summer are turning profits far into what is typically a seasonal lull.
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.