The amendment will become effective when the November 2016 contract is listed for trading on Nov. 20, after the expiration of the November 2015 trading month. Beginning with the November 2016 contract, the weight range for cattle included in the index will be increased to 700-899 pounds from 650-849 pounds, according to CME. Feeder cattle futures – A standardized electronic contract traded 2 Cattle and Beef Market Definitions on the Chicago Mercantile Exchange, representing 50,000 pounds of steers weighing 700 to 899 pounds. Feeder Cattle futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of feeder cattle (eg. 50000 pounds) at a predetermined price on a future delivery date. Feeder cattle are weaned calves that have reached a weight of between 600 and 800 pounds. At this point, feeder cattle are put in a feedlot where they consume a high-energy feed diet consisting mainly of corn and other grains. Owner shall give feeder at least two days notice prior to the time that the cattle arrive or as agreed upon and will describe the cattle to feeder as to weight, health, and genetic background. By accepting the owner’s cattle under the terms of this custom contract, feeder acknowledges that the condition and quality of the cattle are The contract size for the cattle futures are 40,000 pounds or 50,000 pounds respectively and priced in cents per pound and approximately representing 35 head, of cattle. The tick size is $0.00025 per pound or $10 per contract for Live Cattle and $12.50 per contract for Feeder Cattle. Feeding calves from a start weight of 550 pounds to a finished weight of 1150 pounds requires 203 days of feeding when the animals have an average daily gain of 2.95 pounds per day. It is also assumed that the cattle inventory turns about 1.7 times a year.
The calves usually spend 6-10 months in the stocker operation, growing to near full-sized by foraging for summer grass or winter wheat. When the cattle reach 600-800 pounds, they are typically sent to a feedlot and become "feeder cattle." In the feedlot, the cattle are fed a special food mix to encourage rapid weight gain.
The BM&F adopted cash settlement for the fed cattle futures contract in order to eliminate price series and the physical delivery feeder cattle futures contract prices. Hedging risk reduction was higher for animals matching contract weight A feeder cattle contract is equivalent to 50,000 pounds or 23 metric tons of feeder cattle, and it normally expires in the months of January, March, April, May, August, September, October, and November. At expiration, the contract is settled with cash, so you need not worry about taking or making a delivery of the commodity. Feeder cattle are a popularly traded futures commodity which refers to cattle that have been raised to 600-800 pounds and are sent to feedlots in order to gain enough weight to be ready for slaughter (1000-1300 pounds) at which point they become live cattle. This process takes roughly 3-4 months. The calves usually spend 6-10 months in the stocker operation, growing to near full-sized by foraging for summer grass or winter wheat. When the cattle reach 600-800 pounds, they are typically sent to a feedlot and become "feeder cattle." In the feedlot, the cattle are fed a special food mix to encourage rapid weight gain. This week’s illustration highlights a straightforward example for 640-pound calves priced at $155 per cwt with a $10 per cwt right-side slide (a slide applies only to the cattle as they get heavier), no slide window (zero tolerance beyond the base weight) and a 25-pound weight stop in place.
Feeder cattle are weaned calves that have been raised to be 600-800 lbs.Once a calf reaches a minimum weight, it is sent to a feedlot with the goal of putting on weight aggressively. Traditionally, feeder cattle must be mature enough in order to go to the feedlot and be fattened prior to slaughter.
Hedgers that currently use the Feeder Cattle contract to cross hedge their stockers Likewise, buyers of stocker cattle that weigh 350–450 pounds will have to Cattle futures contracts come in two main age and weight group are designated into the Feeder cattle 26 Jun 2014 Feeder cattle are generally slaughtered when they hit a weight of Live and Feeder cattle contracts – the Chicago Mercantile Exchange (CME) Exchange nearby futures contract price for feeder cattle and the actual price received in dollars per hundred weight price ($/cwt). Independent variables include If your total cost to feed your cattle from 600 lbs. to 1,200 lbs. If the calves weigh 1,200 lbs. when sold to the packer (including a 4% pencil shrink), the breakeven If you wish, some feedyards will include a legal contract as part of the feeding