Slaughter Steer Close-Outs
Current & Future
.For the week ending July 1st
..

..
Typical closeout for un-hedged steers sold this week:
  • Placed On Feed 150 days ago = February 2nd
  • Projected Profit/(Loss) based on the futures when placed on feed: ($47.36)
.
Cost of 750 lb. steer delivered to the feedyard @ $159.74 per cwt. 
$1,198.05
Cost of gain* for 600 lbs. @ $83.91 per cwt.
$503.46
Interest** @ Prime + 2% on cattle cost for 150 days
$27.08
Interest** @ Prime + 2% of the feed cost for 150 days
$5.69
Total Cost & Expense
$1,734.28
.
Sale proceeds: 1,350 lb. steer @ $122.00 per cwt.
$1,647.00
.
This week's Profit/(Loss) per head
($87.28)
.
Profit/(Loss) per head for previous week
($168.01)
Change from previous week
+$80.73
.
Sale price necessary to breakeven
$128.47
.

.
Projected closeout for steers placed on feed this week:
  • Projected Sale Date @ 150 days on feed = November 28th
  • Cost of 750 lb. steer delivered to the feedyard @ $146.22 per cwt.
    $1,096.65
    Cost of gain* for 600 lbs. @ $77.76 per cwt.
    $466.56
    Interest** @ Prime + 2% on cattle cost for 150 days
    $24.79
    Interest** @ Prime + 2% of the feed cost for 150 days
    $5.27
    Total Cost & Expense
    $1,593.27
    .
    Sale proceeds: December Live Cattle Futures @ $113.25 per cwt.
    $1,528.88
    .
    Projected Profit/(Loss) per head
    ($64.40)
    . .
    Projected Profit/(Loss) per head for previous week
    ($62.03)
    Change from previous week
    -$2.37
    .
    Sale price necessary to breakeven
    $118.02
    .

    .
    *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: ($47.36)
    Typical closeout for un-hedged steers sold this week: ($87.28)
    Projected Profit/(Loss) based on the futures & estimated Cost of Gain this week: ($64.40)
    ,.

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