Florida Cattle Market Report: March 2016
The August 2016 Feeder Cattle futures contract declined by $1.30 cwt. during March. Based on this futures price decrease, August Feeder Cattle revenues decreased by approximately $9.75/hd. ($1.30/cwt. * 7.5 cwt.) on a 750-pound feeder steer which amounts to $650.00 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.
- 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.
- 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.).
- 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.