Feeder Cattle Futures Trading Basics

Feeder Cattle futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of feeder cattle (eg. 50000 pounds) at a predetermined price on a future delivery date.

Feeder Cattle Futures Exchanges

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).

Exchange & Product NameSymbolContract SizeInitial Margin
CME Feeder Cattle Futures
(Price Quotes)
FC50000 pounds
(Full Contract Spec)
USD 2,025 (approx. 4%)
(Latest Margin Info)

Feeder Cattle Futures Trading Basics

Consumers and producers of feeder cattle can manage feeder cattle price risk by purchasing and selling feeder cattle futures. Feeder Cattle producers can employ a short hedge to lock in a selling price for the feeder cattle they produce while businesses that require feeder cattle can utilize a long hedge to secure a purchase price for the commodity they need.

Feeder Cattle futures are also traded by speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from favorable feeder cattle price movement. Speculators buy feeder cattle futures when they believe that feeder cattle prices will go up. Conversely, they will sell feeder cattle futures when they think that feeder cattle prices will fall.

Learn More About Feeder Cattle Futures & Options Trading

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