Slaughter Steer Close-Outs
Current & Future (Projected)
.For the week ending July 22nd
..

.
Closeout projections are for cattle placed on feed by a cattle owner at a commercial feedyard and not for cattle owned by a feedyard and fed at cost or a farmer/feeder utilizing his own feed.
.
Typical closeout for un-hedged steers sold this week:
  • Placed On Feed 150 days ago = February 23rd
  • Projected Profit/(Loss) based on the futures when placed on feed: ($65.05)
.
Cost of 750 lb. steer delivered to the feedyard @ $155.88 per cwt. 
$1,169.10
Cost of gain* for 600 lbs. @ $77.68 per cwt.
$466.08
Interest** @ Prime + 2% on cattle cost for 150 days
$26.42
Interest** @ Prime + 2% of the feed cost for 150 days
$5.27
Total Cost & Expense
$1,666.87
.
Sale proceeds: 1,350 lb. steer @ $115.00 per cwt.
$1,552.50
.
This week's Profit/(Loss) per head
($114.37)
.
Profit/(Loss) per head for previous week
($88.46)
Change from previous week
-$25.91
.
Sale price necessary to breakeven
$123.47
.

.
Projected closeout for steers placed on feed this week:
  • Projected Sale Date @ 150 days on feed = December 19th
  • Cost of 750 lb. steer delivered to the feedyard @ $137.35 per cwt.
    $1,030.13
    Cost of gain* for 600 lbs. @ $73.71 per cwt.
    $442.26
    Interest** @ Prime + 2% on cattle cost for 150 days
    $23.28
    Interest** @ Prime + 2% of the feed cost for 150 days
    $5.00
    Total Cost & Expense
    $1,500.67
    .
    Sale proceeds: December Live Cattle Futures @ $109.20 per cwt.
    $1,474.20
    .
    Projected Profit/(Loss) per head
    ($26.47)
    . .
    Projected Profit/(Loss) per head for previous week
    ($57.73)
    Change from previous week
    +$31.26
    .
    Sale price necessary to breakeven
    $111.16
    .

    .
    *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
    .

    .
    ,.

    .
    Typical closeout for steers sold this week and hedged when placed on feed: ($65.05)
    Typical closeout for un-hedged steers sold this week:($114.37)
    Projected Profit/(Loss) based on the futures & estimated Cost of Gain this week: ($26.47)
    ,.

    .
     

     
     
    .
    Copyright © TM - The Cattle Range - All Rights Reserved