How much is a feeder cattle futures contract worth?

Trading on the CME, feeder cattle futures contracts have a value of 50,000 pounds and a tick size of $12.5. But what exactly are feeder cattle and how can you make the most of this market? Feeder cattle are young cows and steers that have reached a weight of around 600 to 800 pounds after weaning.

What are feeder cattle futures?

Feeder cattle futures are one of the most widely traded livestock futures contracts in the U.S. Feeder cattle futures contracts represent the delivery of cattle that are ready to be sold for use in industries including agriculture and in the manufacture of consumer goods.

How to invest in feeder cattle?

You can invest in Feeder Cattle either through ETFs or through Future contracts. The Future contracts are traded on CME and the ETFs are traded on stock exchanges. The following are ETFs that cover Feeder Cattle price. COW: iPath DJ-UBS Livestock ETN (NYSE: COW) UBC: E-TRACS UBS Bloomberg CMCI Livestock ETN (UBC) LSTK: iPath Pure Beta Livestock ETN