Live cattle futures contracts are traded electronically on the Globex platform Monday 9:30 a.m. ET to 2:05 p.m. ET and represent 40,000 pounds of market ready cattle. To trade live cattle futures, you’ll need a futures account that has been approved.
How do you go about purchasing cattle futures?
At the Chicago Mercantile Exchange, you can trade Live Cattle futures (CME). Prices for CME Live Cattle futures are quoted in dollars and cents per pound, and lots of 40000 pounds are traded (18 metric tons).
What does a live cattle futures contract cost?
Contract parameters for live cattle futures. $10.00 per contract, $0.025/cwt (0.025 cents per pound). Monday, 9:30 a.m. U.S. ET to 2:05 p.m. U.S. ET, live cattle futures trade electronically on the Globex trading platform.
What are my options for purchasing live cattle?
The cattle are moved to the farm management partner farms after they have been acquired. The animals will receive round-the-clock care and supervision from highly trained farm staff as well as a veterinarian.
- On an average of 107.369 sq.ft. (10.000 m2) of land, just one or two animals graze.
- Animals are kept on open fields all year and gain up to 1.65 pounds (0.75 kilogram) per day from natural grazing.
What is the weight of a live cattle contract?
Each 40,000-pound Live Cattle futures contract has a minimum price variation of $.00025 per pound, or $10 every tick.
What is the distinction between feeder cattle and live cattle?
What is the fundamental difference between live cattle and feeder cattle, many of you may wonder?
Live cattle are cattle that have reached a desirable weight (850-1,000 pounds for heifers and 1,000-1,200 pounds for steers) and are ready to be sold to a packer. Feeder cattle are weaned calves who have recently been put to feedlots (approximately 6-10 months old). The cattle are slaughtered by the packer, who then sells the meat in carcass boxes.
The USDA’s predictions for net exports of US meat and poultry, which are likely to climb again this year from past years, are another short-term bullish reason for fat/live cattle.
What role does cattle play in Oklahoma?
The agricultural business has a chance to remind customers about the importance of agriculture with the recent release of the 2017 Census of Agriculture, and Oklahoma is no different. Oklahoma Agriculture continues to demonstrate its importance, with $7.5 billion in agricultural products supplied in 2017. With a 13 percent growth in sales between 2017 and 2012, Oklahoma’s animal business led the way. With 65.6 percent of farms reporting livestock sales in 2017, Oklahoma was able to claim the top rank in the country for the percentage of farms having livestock sales.
Cattle and calves continue to dominate Oklahoma’s agricultural business, accounting for almost half of all agricultural products sold in 2017. Oklahoma’s cattle and calves came in sixth place in the country. Pigs and hogs are in second place, with $1.03 billion in sales and 13.8 percent of total state sales, putting them in ninth place nationally. With $935 million in sales, poultry and eggs ranked third in the state, accounting for 12.5 percent of total sales.
Oklahoma hasn’t lost touch with its agricultural heritage. With the total amount of wheat acres harvested in 2017, Oklahoma remained in fourth place nationwide. Oklahoma now ranks fourth in the nation for cotton acres harvested, thanks to the state’s recent expansion of the cotton sector.
The 2017 Census of Agriculture report contains these and many other agricultural information about Oklahoma.
Thank you to all Oklahoma growers for your support and for demonstrating the importance of agriculture in the state!
What is the definition of a feeder calf operation?
Cattle are in high demand in a variety of industries, including agricultural, apparel, athletic items, and even musical instruments.
Weaned calves weighing 600 to 800 pounds are considered feeder cattle. Cattle farmers provide them high-energy feed at this period to encourage weight gain.
Feeder cattle are slaughtered to generate beef when they reach a weight of about 1,200 to 1,400 pounds.
What exactly is the live cattle market?
Live cattle futures contracts are a type of futures contract that can be used to hedge and speculate on the price of feed cattle. Trading live cattle futures is a typical aspect of a producer’s price risk management program since it allows cattle producers, feedlot operators, and merchant exporters to hedge future selling prices for cattle. Meat packers and merchant importers, on the other hand, can hedge future cattle purchase prices. Producers and buyers of live cattle can also sign into production and marketing contracts that include futures prices as part of a reference price formula for delivering live animals in cash or spot markets. Businesses who buy beef as an input can also buy live cattle futures contracts to protect themselves from rising meat prices.
What is the price of cattle futures?
Cattle futures contracts are 40,000 pounds or 50,000 pounds in size, priced in cents per pound and representing around 35 head of cattle. For Live Cattle, the tick size is $0.00025 per pound, or $10 per contract, and for Feeder Cattle, it is $12.50 per contract.
Feeder cattle contracts can be fulfilled for cash, however live cattle contracts require physical delivery. The contract months for both cattle futures contracts are different.
Trading cattle futures contracts, like any other futures contract, necessitates an initial performance bond and a maintenance margin. This varies from one futures brokerage to the next, but on average, the initial margin required for Globex Feeder cattle is around $1225 and for Globex Live cattle is around $825.
What are futures on feeder cattle?
Feeder Cattle futures are standardized, exchange-traded contracts in which the contract buyer agrees to accept delivery of a particular number of feeder cattle (e.g. 50000 pounds) from the seller at a predetermined price on a future delivery date from the seller.