Are feeder cattle futures a good investment?

Trading feeder cattle futures offers portfolio diversification, a hedge against price fluctuations, the opportunity to capitalize on price trends, and leverage for potentially larger profits. However, it’s important to thoroughly research and understand the market and associated risks before trading.

What is the actual feeder cattle price?

For months in which a CME Group feeder cattle futures contract expires, the actual feeder cattle price is the simple average of the daily settlement prices in the last three trading days prior to the contract expiration date, expressed in dollars per hundredweight.

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.