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 will feeder cattle future prices be like in 2023?

Feeder cattle future prices are forecasted to climb above $200 by autumn of 2023, according to the CME Group. If realized, it will be the highest prices seen for feeder cattle since September 2015. The reason — cattle herds are shrinking.

How do feeder cattle futures work?

* Feeder cattle futures are cash settled, so there is no delivery unlike the live cattle futures. * To arrive at the value of the contract, simply multiply the price of feeder cattle times the size of the contract. For example, if feeder cattle are trading at a price of 1.46550, the total value of the contract is $73,275.00 (50,000 x 1.46550).