In the past month, cattle have posted one of the largest short-term price advances in market history.
Last week, cash fed cattle prices rose $7 to $8 to close at $145 to $147 per hundred.
The rally resulted in cattle feeders earning nearly $590 profit per head last week, according to the Sterling Profit Tracker, a $100 improvement than the week before.
Today’s picture is a 180 degree change from the fall of 2015. When AgDay visited JBS Five Rivers in Hartley, Tx., feed yards were seeing $500 per head losses.
“We’re getting some of that equity back,” said Ryan Moorhouse of JBS Five Rivers, Hartley Feeders. “It started the tail end of 2016 and its carried over into this year. Our industry is a roller coaster and right now we’re at the top. We’ll try to take advantage of it and try to regain some of the equity we lost back then.”
Feedyards are pulling cattle up sooner since the basis is enticing.