Slaughter Steer Close-Outs
Current & Future
.For the week ending June 24th
..

..
Typical closeout for un-hedged steers sold this week:
  • Placed On Feed 150 days ago = January 26th
  • Projected Profit/(Loss) based on the futures when placed on feed: ($16.86)
.
Cost of 750 lb. steer delivered to the feedyard @ $161.22 per cwt. 
$1,209.15
Cost of gain* for 600 lbs. @ $84.22 per cwt.
$505.32
Interest** @ Prime + 2% on cattle cost for 150 days
$27.33
Interest** @ Prime + 2% of the feed cost for 150 days
$5.71
Total Cost & Expense
$1,747.51
.
Sale proceeds: 1,350 lb. steer @ $117.00 per cwt.
$1,579.50
.
This week's Profit/(Loss) per head
($168.01)
.
Profit/(Loss) per head for previous week
($81.71)
Change from previous week
-$86.30
.
Sale price necessary to breakeven
$129.45
.

.
Projected closeout for steers placed on feed this week:
  • Projected Sale Date @ 150 days on feed = November 21st
  • Cost of 750 lb. steer delivered to the feedyard @ $140.30 per cwt.
    $1,052.25
    Cost of gain* for 600 lbs. @ $81.96 per cwt.
    $491.76
    Interest** @ Prime + 2% on cattle cost for 150 days
    $23.78
    Interest** @ Prime + 2% of the feed cost for 150 days
    $5.56
    Total Cost & Expense
    $1,573.35
    .
    Sale proceeds: December Live Cattle Futures @ $111.95 per cwt.
    $1,511.33
    .
    Projected Profit/(Loss) per head
    ($62.03)
    . .
    Projected Profit/(Loss) per head for previous week
    ($114.19)
    Change from previous week
    +$52.16
    .
    Sale price necessary to breakeven
    $116.54
    .

    .
    *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: ($16.86)
    Typical closeout for un-hedged steers sold this week: ($168.01)
    Projected Profit/(Loss) based on the futures & estimated Cost of Gain this week: ($62.03)
    ,.

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