How do live cattle futures prices work?

In a live cattle contract, a 1-cent move is equal to $4. When determining CME’s live cattle profit and loss figures, the difference is calculated between the contract price and the exit price, the result is then multiplied by $4.00. Bovine spongiform encephalopathy (BSE), also known as mad cow disease, can impact live cattle futures prices.

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.

When are live cattle futures delivered?

Live cattle futures are delivered every year in February, April, June, August, October and December. In a live cattle contract, a 1-cent move is equal to $4. When determining CME’s live cattle profit and loss figures, the difference is calculated between the contract price and the exit price, the result is then multiplied by $4.00.