CME Feeder Cattle Futures & Options Trading
Daily Livestock Report
Electronic Trading of Livestock with Ken “Woodie” Wood
Introduction to Cattle Feeding Spreads Article (PDF)
Feeder Cattle Chart book
Feeder Cattle Futures
There are two types of cattle traded at the CME: Live cattle and feeder cattle, so we have to differentiate the two. Live cattle futures are considered cattle from the calf stage to the point when they reach about 600 to 800, which takes about six to ten months. At this point, they are transferred to feedlots and they will be considered feeder cattle at this point. They remain on the feedlots for about another five months where they will put on about another 500 pounds. Here, they meet their fate and become slaughtered. The average slaughter weight is about 1,250 pounds and a dressed carcass weight is about 750 pounds. The seven major cattle producing states are Arizona, California, Colorado, Iowa, Kansas, Nebraska, and Texas. Cattle are usually fed corn, milo and even wheat if the price is cheap enough. The protein end of their diet usually comes from soybeans. They are also fed roughage like hay and alfala.