Slaughter Steer Close-Outs
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For the week ending May 27th
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Typical closeout for un-hedged steers sold this week:
  • Placed On Feed 150 days ago = December 29th
  • Projected Profit/(Loss) based on the futures when placed on feed: $59.88
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Cost of 750 lb. steer delivered to the feedyard @ $156.22 per cwt. 
$1,171.65
Cost of gain* for 600 lbs. @ $84.16 per cwt.
$504.96
Interest** @ Prime + 2% on cattle cost for 150 days
$26.48
Interest** @ Prime + 2% of the feed cost for 150 days
$5.71
Total Cost & Expense
$1,708.80
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Sale proceeds: 1,350 lb. steer @ $124.00 per cwt.
$1,674.00
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This week's Profit/(Loss) per head
($34.80)
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Profit/(Loss) per head for previous week
$75.62
Change from previous week
-$110.42
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Sale price necessary to breakeven
$126.58
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Projected closeout for steers placed on feed this week:
  • Projected Sale Date @ 150 days on feed = October 24th
  • Cost of 750 lb. steer delivered to the feedyard @ $149.85 per cwt.
    $1,123.88
    Cost of gain* for 600 lbs. @ $86.34 per cwt.
    $518.04
    Interest** @ Prime + 2% on cattle cost for 150 days
    $25.40
    Interest** @ Prime + 2% of the feed cost for 150 days
    $5.85
    Total Cost & Expense
    $1,673.17
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    Sale proceeds: October Live Cattle Futures @ $115.80 per cwt.
    $1,563.30
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    Projected Profit/(Loss) per head
    ($109.87)
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    Projected Profit/(Loss) per head for previous week
    ($100.57)
    Change from previous week
    -$9.30
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    Sale price necessary to breakeven
    $123.94
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    *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 and hedged when placed on feed: $59.88
    Typical closeout for un-hedged steers sold this week: ($34.80)
    Projected Profit/(Loss) based on the futures & estimated Cost of Gain this week: ($109.87)
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