What are live cattle futures?

Live cattle futures are the most widely traded livestock futures contract in the U.S. Live cattle futures contracts represent the delivery of full-grown cattle that are ready to be sold to meat processors. Live cattle futures can be traded nearly 24 hours a day on the thinkorswim ® trading platforms. Considering trading live cattle futures?

What are the different types of cattle futures contracts?

There are two types of cattle futures contracts — Live Cattle and Feeder Cattle. Feeder Cattle consist of calves weighing 600-800 pounds while Live Cattle are cattle fed to the point of harvest weight. A contract size is 40,000 lbs. for Live Cattle or 50,000 lbs. for Feeder Cattle, and they are priced in cents per pound.

Are cattle futures a good investment?

Trading Cattle futures offers day traders the potential to make large sums of money, but it does come with the risk of price volatility. However, if you look at the profit potential, cattle futures, be it live cattle or feeder cattle futures contracts definitely offer bang for the buck.