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Feeder Cattle History

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Contract History

If you are interested in trading Feeder Cattle futures it is helpful to become familiar with the history of the Feeder Cattle market. CME® Feeder Cattle futures were added to CME livestock products in 1971. The CME Feeder Cattle contract covers calves that will enter the feedlots in the 650-849 pound range for finishing to market weight - the basis the CME Live Cattle contract. As a derivative of the CME Live Cattle Futures, prices are influenced by factors that affect both the feedgrain and fed cattle prices.

The CME’s feeder cattle index is a seven-day weighted average of United States Department of Agriculture (USDA) prices from a 12-state region: Colorado, Iowa, Kansas, Missouri, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas, and Wyoming. Medium #1 and Large #1 feeder steers weighing between 700 and 849 pounds are included in the calculation, except for those identified as fancy, thin, fleshy, gaunt, or full.

The Feeder Cattle contract has the distinction of being the first commodity contract to expire to a cash index price, allowing hedgers and traders to hold contract positions up through contract expiration. Some futures traders prefer this contract cash-settled feature over contracts that are deliverable.

CME Livestock Futures and Options

Click on the link above to download a very informative .pdf brochure entitled "CME Livestock Futures and Options.” It was published by the Chicago Mercantile Exchange. This is a must read guide for any speculator or hedger considering a trade in the feeder cattle market using exchange traded feeder cattle futures and options.

Click here to contact a commodities broker with experience in the feeder cattle market.

Commodity trading is not suitable for everyone. The risk of loss in trading can be substantial. This material has been prepared by a sales or trading employee or agent of Van Commodities, Inc. and is, or is in the nature of, a solicitation. This material is not a research report prepared by Van Commodities, Inc. Research Department. Please view our Risk Disclaimer.

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