What are cattle futures?

Before taking advantage of these tools, one must understand the fundamentals of the market. There are two types of cattle futures to trade when addressing beef futures: feeder cattle and live cattle. While feeder and live cattle are related contracts, each has its own characteristics that affect supply and demand.

How much is a cattle futures contract worth?

For example, if feeder cattle are trading at a price of 1.46550, the total value of the contract is $73,275.00 (50,000 x 1.46550). Live cattle futures began trading in 1964 at the Chicago Mercantile Exchange (CME) as the first non-storable futures contract. Live cattle are traditionally raised in the Midwest, Southwest, and California (in the US).

Where are live cattle futures and options traded?

As mentioned previously, live cattle futures and options are traded on the Chicago Mercantile Exchange. The price is quoted in cents per pound. Various market players, including cattle producers, packers, consumers, and independent traders all trade using live cattle contracts.