Slaughter Steer Close-Outs
Current & Future (Projected)
.For the week ending September 23rd
..

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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.
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Typical closeout for un-hedged steers sold this week:
  • Placed On Feed 150 days ago = April 26th
  • Projected Profit/(Loss) based on the futures when placed on feed: ($102.66)
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Cost of 750 lb. steer delivered to the feedyard @ $146.76 per cwt. 
$1,100.70
Cost of gain* for 600 lbs. @ $73.95 per cwt.
$443.70
Interest** @ Prime + 2% on cattle cost for 150 days
$24.88
Interest** @ Prime + 2% of the feed cost for 150 days
$5.01
Total Cost & Expense
$1,574.29
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Sale proceeds: 1,350 lb. steer @ $107.00 per cwt.
$1,444.50
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This week's Profit/(Loss) per head
($129.79)
.
Profit/(Loss) per head for previous week
($127.57)
Change from previous week
-$2.22
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Sale price necessary to breakeven
$116.61
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Projected closeout for steers placed on feed this week:
  • Projected Sale Date @ 150 days on feed = February 20th
  • Cost of 750 lb. steer delivered to the feedyard @ $136.54 per cwt.
    $1,024.05
    Cost of gain* for 600 lbs. @ $72.34 per cwt.
    $434.04
    Interest** @ Prime + 2% on cattle cost for 150 days
    $23.15
    Interest** @ Prime + 2% of the feed cost for 150 days
    $4.91
    Total Cost & Expense
    $1,486.14
    .
    Sale proceeds: February Live Cattle Futures @ $107.10 per cwt.
    $1,445.85
    .
    Projected Profit/(Loss) per head
    ($40.29)
    . .
    Projected Profit/(Loss) per head for previous week
    ($3.52)
    Change from previous week
    -($36.77)
    .
    Sale price necessary to breakeven
    $110.08
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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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    ,.

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    Typical closeout for steers sold this week and hedged when placed on feed: ($102.66)
    Typical closeout for un-hedged steers sold this week:($129.79)
    Projected Profit/(Loss) based on the futures & estimated Cost of Gain this week: ($40.29)
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