Trade Meats | Livestock Futures

Feeder Cattle Hedger

Home
About Us
Live Cattle
Feeder Cattle
Lean Hogs
Education
Quotes and Charts
Market Analysis
Free Demo Account
FAQs
Open Account
Contact Us
feeder.jpg

Feeder Cattle Hedger 

A hedger in the feeder cattle market is an individual who uses the futures market to offset price risk when intending to sell or buy the actual feeder cattle. Hedging is possible because the feeder cattle cash prices and feeder cattle futures prices tend to move in the same direction. However, the difference between the cash price and the futures price may narrow or widen. The change in the difference between the cash price and the futures price is called basis risk. Because of the changing basis no hedge can be perfect.

Where can you hedge feeder cattle? Feeder cattle can be hedged on the Chicago Mercantile Exchange (CME). The CME offers a competitive and transparent market place to engage in efficient hedging strategies. If you are interested in hedging feeder cattle please contact us. One of our experienced feeder cattle traders will be happy to give you a call to discuss hedging strategies with you.

An Overview of CME Commodity Futures for Hedgers

Click on the link above to download a very informative .pdf brochure entitled "An Overview of CME Commodity Futures for Hedgers.” It was published by the Chicago Mercantile Exchange. This is a must read guide for any 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.

© 2011 Van Commodities, Inc. All Rights Reserved