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.
Where can I trade feeder cattle futures?
You can trade Feeder Cattle futures at Chicago Mercantile Exchange (CME). CME Feeder Cattle futures prices are quoted in dollars and cents per pound and are traded in lot sizes of 50000 pounds (23 metric tons). Consumers and producers of feeder cattle can manage feeder cattle price risk by purchasing and selling feeder cattle futures.
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.
