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January Florida Cattle Market Report

January Florida Cattle Market Report

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

Prevatt fig 1 Jan 16The August 2016 Feeder Cattle futures contract declined by $ 8.70/cwt. during January. Based on this futures price decrease, August Feeder Cattle revenues decreased by approximately $ 65.25/hd. ($ 8.70/cwt. * 7.5 cwt.) on a 750-pound feeder steer which amounts to $ 4,350.00 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 fig 2 Jan 16

  1. The breakeven price was estimated to be $ 783.30/hd. or $ 142.42/cwt. ($ 783.30/hd. divided by 5.50 cwt.). The breakeven price includes production costs of $ 765/hd. and death loss of $ 18.30/hd.
  2. The price objective was estimated to be $ 933.30/hd. or $ 169.69/cwt. ($ 933.30/hd. divided by 5.50 cwt.). The price objective includes production costs of $ 765/hd., death loss ($ 18.30/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 settlement price plus the expected August 2016 South Florida 550 lb. Feeder Calf Basis of $ 8/cwt.

 

PG

Author: admin – webmaster@ifas.ufl.edu

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Permanent link to this article: http://okaloosa.ifas.ufl.edu/newsletters/2016/02/06/january-florida-cattle-market-report/