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July Florida Cattle Market Price Watch

July Florida Cattle Market Price Watch

The August 2017 Feeder Cattle futures contract increased by $ 0.08/cwt. during July. Based on this futures price increase, August Feeder Cattle revenues increased by approximately $ 0.60/head ($ 0.08/cwt. * 7.5 cwt.) on a 750-pound feeder steer which amounts to $ 40.00/truckload (50,000 lbs.). The August Feeder Cattle futures contract high, contract low, and price range since September 2016 are $ 160.10, $ 109.90, and $ 50.20/cwt., respectively. The price range of $ 50.20/cwt. on a 750-pound feeder steer totals $ 376.50/head and $ 25,100.00/truckload.

  1. The breakeven price was estimated to be $ 722.10/hd. or $ 131.29/cwt. ($ 722.10/hd. divided by 5.50 cwt.). The breakeven price includes production costs of $ 705/hd. and death loss of $ 17.10/hd.
  2. The price objective was estimated to be $ 872.10/hd. or $ 158.56/cwt. ($ 872.10/hd. divided by 5.50 cwt.). The price objective includes production costs of $ 705/hd., death loss ($ 17.10/hd.), family living withdrawal ($ 100/hd.), and growth capital/retirement ($ 50/hd.).
  3. The expected cash price is equal to the daily August 2017 Feeder Cattle futures closing price plus an expected August 2017 South Florida 550 lb. Feeder Calf Basis of $ 2/cwt.

 

PG

Author: Chris Prevatt – prevacg@ufl.edu

Chris Prevatt

Permanent link to this article: http://jackson.ifas.ufl.edu/newsletters/2017/08/05/july-florida-cattle-market-price-watch/