Slaughter Steer Close-Out
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For the week ending August 27th...

.Typical closeout for un-hedged steers sold this week...
  • Placed On Feed 135 days ago = April 14th
  • Projected Profit/(Loss) based on the futures when Placed on Feed: ($21.56)
Cost of 750 lb. steer delivered to the feedyard @ $112.64 per cwt. 
$844.80
Cost of gain* for 500 lbs. @ $69.87 per cwt.
$349.35
Interest** @ 5.25% on cattle cost for 135 days
$16.40
Interest on 50% of the feed cost for 135 days
$3.39
Total Cost & Expense
$1,213.95
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Sale proceeds... 1,250 lb. steer @ $99.50 per cwt.
$1,243.75
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This week's Profit/(Loss) per head...
$29.80
.
Profit/(Loss) per head for previous week...
$74.27
Change from previous week...
-$44.47
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Sale price necessary to breakeven...
$97.12
.

.Projected closeout for steers placed on feed this week...
  • Projected Sale Date @ 135 days on feed = January 9th
  • Cost of 750 lb. steer delivered to the feedyard @ $114.22 per cwt.
    $856.65
    Cost of gain* for 500 lbs. @ $79.82 per cwt.
    $399.10
    Interest** @ 5.25% on cattle cost for 135 days
    $16.63
    Interest on 50% of the feed cost for 135 days
    $3.87
    Total Cost & Expense
    $1,276.26
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    Sale proceeds... February Live Cattle Futures @ $101.32 per cwt.
    $1,266.50
    .
    Projected Profit/(Loss) per head...
    ($9.76)
    . .
    Projected Profit/(Loss) per head for previous week...
    ($3.78)
    Change from previous week...
    -$5.98
    .
    Sale price necessary to breakeven...
    $102.10
    .

    *In addition to feed costs, "Cost of Gain" includes death loss, medicine, insurance, etc.
     **Interest Rate @ Prime + 2.00%... Prime Rate as defined and published by The Wall Street Journal

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    • Typical closeout for steers sold this week
    • Projected closeout for steers placed on feed this week

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