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December Florida Cattle Market Price Watch

Prevatt FL Cattle Market headerChris Prevatt, UF/IFAS Livestock Economist

Prevatt Dec 1The August 2016 Feeder Cattle futures contract declined by $ 1.10/cwt. during December. Based on this futures price decrease, August Feeder Cattle revenues decreased by approximately $ 8.25/hd. ($ 1.10/cwt. * 7.5 cwt.) on a 750-pound feeder steer which amounts to $ 550.00 per truckload (50,000 lbs.).

The August Feeder Cattle futures contract low, contract high, and price range since September 2015 are $ 147.20, $ 188.70, and $ 41.50/cwt., respectively. The price range of $ 41.50/cwt. on a 750-pound feeder steer totals $ 311.25/hd. and $ 20,750.00 per truckload.Prevatt Dec 2

  1. The breakeven price was estimated to be $ 768.00/hd. or $ 146.29/cwt. ($ 768.00/hd. divided by 5.25 cwt.). The breakeven price includes production costs of $ 750/hd. and death loss of $ 18.00/hd.
  2. The price objective was estimated to be $ 918.00/hd. or $ 174.86/cwt. ($ 918.00/hd. divided by 5.25 cwt.). The price objective includes production costs of $ 750/hd., death loss ($ 18.00/hd.), family living withdrawal ($ 100/hd.), and growth capital/retirement ($ 50/hd.).
  3. The expected cash price is equal to the daily August 2016 Feeder Cattle futures closing price plus an expected August 2016 South Florida 525 lb. Feeder Calf Basis of -$ 2/cwt.

 

PG

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Permanent link to this article: http://okaloosa.ifas.ufl.edu/newsletters/2016/01/09/december-florida-cattle-market-price-watch/