Feeder Cattle Futures
When it comes to trading in the livestock markets, feeder cattle are one of the most popular commodities. Feeder cattle are young beef cattle that are typically fed a diet of grains and hay in order to fatten them up for slaughter. These cattle are usually sold by the pound and are used to provide a consistent supply of beef to the market.
Feeder cattle prices are determined by a number of factors, including the price of corn, the overall demand for beef, and the weather. The price of feeder cattle can be quite volatile, which makes them an attractive commodity for traders.
Feeder cattle futures are traded on the Chicago Mercantile Exchange (CME). Futures contracts are available for trading in February, April, August, and October. Each contract is for the delivery of 40,000 pounds of feeder cattle.
The price of feeder cattle is affected by a number of factors, but the most important factor is the price of corn. Corn is the primary feed for cattle, so the price of corn has a direct impact on the price of feeder cattle. Other factors that can affect the price of feeder cattle include the overall demand for beef, the weather, and the price of other commodities such as soybeans.
Feeder cattle prices are highly volatile, which makes them an attractive commodity for traders. The price of feeder cattle can move up or down very quickly, so it is important to be aware of the factors that can affect the price.
The best way to trade feeder cattle is to use futures contracts. Futures contracts give you the ability to lock in a price for the delivery of feeder cattle at a later date. This can be helpful if you expect the price of feeder cattle to move higher or lower in the future.
If you are looking to trade in the livestock markets, feeder cattle futures are an attractive option. Feeder cattle prices are volatile, which can provide an opportunity for traders to make profits. However, it is important to be aware of the factors that can affect the price of feeder cattle so that you can make informed trading decisions.