September 2017 Florida Cattle Market Price Watch
The August 2018 Feeder Cattle futures contract increased by $5.95/cwt. during September. Based on this futures price increase, August Feeder Cattle revenues increased by approximately $47.60/head ($5.95/cwt. * 8.0 cwt.) on an 800-pound feeder steer which amounts to $2,975.00/truckload (50,000 lbs.). The August Feeder Cattle futures contract high, contract low, and price range since September 2017 are $150.02, $139.80, and $10.22/cwt., respectively. The price range of $10.22/cwt. on an 800-pound feeder steer totals $81.76/head and $5,110.00/truckload.1The 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.
2The 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.).
3The 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.