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.
The fed cattle market has traded in a tight range at about $111 per cwt for the past six weeks, which results in cattle feeders losing an average of $50 to $60 per head.
While cash cattle prices slipped only modestly, cattle feeders saw margins erode by $86 per head, falling from an average profit of $38 two weeks ago to an average loss of $49 per head last week.
While cash cattle prices slipped only modestly, cattle feeders saw margins erode by $86 per head, falling from an average profit of $38 two weeks ago to an average loss of $49 per head last week.
Adding value and capturing that value (making money) versus adding value and losing value (losing money) is largely a function of your break-even price.