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February Florida Cattle Market Price Watch
By Chris Prevatt 
 
 
The August 2018 Feeder Cattle futures contract decreased by $0.58/cwt. during February. Based on this futures price decrease, August Feeder Cattle revenues decreased by approximately $4.64/head ($0.58/cwt. * 8.0 cwt.) on an 800-pound feeder steer which amounts to $290.00/truckload (50,000 lbs.). The August Feeder Cattle futures contract high, contract low, and price range since September 2017 are $159.10, $139.80, and $19.30/cwt., respectively. The price range of $19.30/cwt. on an 800-pound feeder steer totals $154.40/head and $9,650.00/truckload.
 
  1. The breakeven price was estimated to be $714.13/head or $129.84/cwt. ($714.13/head divided by 5.50 cwt.).  The breakeven price includes variable and fixed production costs of $419/head and $295/head, respectively.
  2. The price objective was estimated to be $864.36/head or $157.16/cwt. ($864.36/head divided by 5.50 cwt.).  The price objective includes production costs of $714/head, family living withdrawal ($100/head), and growth capital/retirement ($50/head).
  3. The expected cash price is equal to the daily August 2018 Feeder Cattle futures closing price plus an expected August 2018 South Florida 550 lb. Feeder Calf Basis of $2/cwt.