Cattle and hog feeders are benefitting from dramatically lower grain and feed costs this year while live animal sale prices are higher. Profit margins for both species have doubled in the past month.
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.