Cattle feeding losses averaged $83 per head last week, while packers recorded $168 per head profits, according to the Sterling Beef Profit Tracker.
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.
A $1 per cwt rally helped boost cattle feeding profits marginally last week while packers lost a little off their large margins.
Packer margins improved $55 per head last week as Choice beef cutout values gained nearly $4 per cwt and cash cattle prices declined $1 per cwt.
Cattle and hog margins are headed south as supplies build and packers run near capacity.
Packer margins have grown to exceptionally high levels in recent weeks, while feedyard profits have eroded.
Packer margins advanced on softer cash cattle prices and gain in the beef cutout prices.