Cash cattle prices lost another $2 per cwt. last week, a decline of $7 over two weeks. Coupled with higher input costs on feeder cattle, the decline feedyards with an average $22 per head loss last week.
Despite an average $1 decline in cash fed cattle prices last week, cattle feeding margins remained solidly profitable on a cash basis.
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.
This year's weather extremes will play a role in the success of calf marketing programs.
Cattle feeding margins improved $43 per head last week as cash prices gained nearly $2 per cwt.
Cash cattle prices improved $1 per cwt., helping lift feeding margins to $118 per head, according to the Sterling Beef Profit Tracker.
Both feeding and packing profit margins exceeded $100 per head last week with a $1 rally in the cash fed cattle trade.
Cattle feeding and packer profit margins were mostly steady the week ending December 21, with cash prices for fed cattle slightly higher.