What are cattle futures?

Before taking advantage of these tools, one must understand the fundamentals of the market. There are two types of cattle futures to trade when addressing beef futures: feeder cattle and live cattle. While feeder and live cattle are related contracts, each has its own characteristics that affect supply and demand.

Is the cattle futures market worth it?

That’s why even though the cattle futures market is smaller in comparison to other securities, it’s still worth taking a closer look at. Whether it’s live or feeder cattle, futures contracts can definitely yield some pretty juicy gains.

Where are live cattle futures and options traded?

As mentioned previously, live cattle futures and options are traded on the Chicago Mercantile Exchange. The price is quoted in cents per pound. Various market players, including cattle producers, packers, consumers, and independent traders all trade using live cattle contracts.