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Home / Education / Markets / Livestock Futures Overview / Feeder Cattle Futures

Feeder Cattle Futures

Feeder Cattle Futures The world cattle population is well over 1 billion head, and in many cultures, such as in parts of Africa, having many cattle is a good signal of wealth. In order to be transferred to the feedlot and fattened for slaughter, feeder cattle must be between 1-2 years of age. The steer and cows that are chosen to become feeder cattle have usually been culled from a main herd because they are superfluous to breeding needs.

Feeder Cattle Futures Contract Specifications
Contract Size 50,000 pounds (˜23 metric tons)
Price Quotation Cents per pound
Trading Hours Monday 9:05 a.m. Central Time/CT-Opening. At 4:00 p.m. CT on Monday- Thursday, the markets halt and restart at 8:00 a.m. CT on the next morning. Friday 1:55 p.m. CT-Close
Minimum Price Fluctuation $.00025 per pound ($12.50 per contract)
Product Code CME Globex: GF
CME ClearPort: 62
Clearing: 62
TAS: GFT
Listed Contracts January (F), March (H), April (J), May (K), August (Q), September (U), October (V) & November (X)
Settlement Method Financially Settled
Last Trade Date Last Thursday of the contract month with exceptions for November and other months, 12:00 p.m.
Trade At Marker Or Trade At Settlement Rules (TAS) Trading at settlement is available for first 2 listed futures contract months, a calendar spread between the first and second contract month, and are subject to the existing TAS rules. The Last Trade Date for CME Livestock TAS products will be the second to last business day in the month prior to the named contract month.

Trading in all CME Livestock TAS products will be 9:05-13:00 Chicago time on Mondays or on the Tuesdays that follow a Monday holiday, and Tuesday through Friday 8:00-13:00, Chicago time.

TAS products will trade a total of four ticks above and below the settlement price in ticks of the corresponding futures contract (0.00025), off of a “Base Price” of 0 to create a differential (plus or minus 4 ticks) versus settlement in the underlying product on a 1 to 1 basis. A trade done at the Base Price of 0 will correspond to a “traditional” TAS trade which will clear exactly at the final settlement price of the day.

Settlement Procedures Livestock Futures Settlement Procedures
Exchange Rules These contracts are listed with, and subject to, the rules and regulations of CME.
Source: CME Group

Feeder Cattle Facts

Most feeder cattle are bred in the summer to ensure that their calves are born in the spring season because of both the temped climate and the abundance of pasture to feed on. Around 8 months of age, cattle are weaned from their mothers and sent to stocker operations in order to encourage growth to a substantial size (600-800 lbs.). After reaching this weight, feeder cattle are then sent to a feed lot where they are fed a certain diet to inhibit a quick weight gain. When feeder cattle mature to 1,200 lbs., they are sold to meat packers to be butchered. The U.S. exports over 2 billion pounds of beef every year.

Feeder cattle futures allow traders to be a part of an all-encompassing market that includes price demand for feed grain and the cattle themselves. It can also allow traders to address price risk among those involved in the trade of feeder cattle and to assess supply and demand of cattle, feed, and for both the current and future outlook.

Source: Barchart

Last updated October 2015

Additional Info

Recent Posts on Feeder Cattle

  • Beyond the Spotlight: November 08, 2021 (Wheat, Cotton, OJ) (11/8/2021) - Beyond the Spotlight is a weekly video released on Mondays that spotlights two or three markets that may become trading opportunities for the week ahead. This enables you as a subscriber of the Trade Spotlight advisory service to look ahead with us, while potentially creating additional trading opportunities for yourself. The week’s video linked below… Read more.
  • Trade Spotlight: Futures – Weekly Summary: Canadian, Feeder Cattle, Sugar (10/24/2021) - Shorted the Canadian Dollar futures contract. Trailed stop losses on the Feeder Cattle and Sugar positions to lock in gains and stopped out in both for a profit.
  • Beyond the Spotlight: October 18, 2021 (Sugar & Feeder Cattle) (10/18/2021) - Beyond the Spotlight is a weekly video released on Mondays that spotlights two or three markets that may become trading opportunities for the week ahead. This enables you as a subscriber of the Trade Spotlight advisory service to look ahead with us, while potentially creating additional trading opportunities for yourself. The week’s video linked below… Read more.

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The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.

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