Feeder Cattle Futures
Commodity and futures prices like
feeder cattle prices are usually quoted the same way prices are quoted in the cash market (physical market). That is, in dollars,
cents, and sometimes fractions of a cent. Different commodities are quoted in different trading units. Feeder cattle prices
are quoted per ounce. Be certain you understand the price quotation system for the particular commodity that you consider
CME feeder cattle futures contract is a contract for future physical delivery of 50,000 lbs of feeder cattle; however,
the vast majority of the futures positions are offset well before delivery. The CME feeder cattle futures contract is priced
in dollars and cents per lb. The feeder cattle futures trade in $.0001 increments, equivalent to $5.00 per contract.
Example of Futures Quote:
94.05 means $.9405 per lb
Feeder Cattle Options Quotes
The CME feeder cattle options contract controls
50,000 lbs of feeder cattle based on the underlying futures contract. Strike price intervals are priced as follows: First
two months only - $0.01 intervals, $0.60, $0.61, $0.62 etc. All other months - $0.02 intervals, $0.62, $0.64, $0.66, etc.
For spot month, $0.005 intervals, $0.605, $0.610, $0.615 etc.
Example of Options Quote:
2.0 means $.002 per lb
$.002 X 50,000 lbs = $1,000.00