Packer, Cattle Feeding Margins Shrink, Bucking Fundamentals

Beef packer margins have declined 33% in the last week, with per-head profits at the plant now around $332 compared to close to $500 just a week ago. Though that typically means margins are better for cattle producers, but that’s not the case right now, with cash cattle prices declining around $3.50/CWT in the last week. Add to that higher per-head feed costs and one market-watcher says it means cow-calf cash profit margins for the year will average around $51/head while packer margins will likely be around $300/head. On the pork side, per-head packer margins are smaller, but so are producer proceeds; for farrow-to-finish operators, producers will average about a loss of $18/head for the year with packer margins just shy of $50/head. See more of the latest cash livestock and packer margin info.