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Energy
Futures |
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Crude
Oil, Propane,
Natural
Gasoline,
Unleaded Gasoline, Heating
Oil/Diesel, Unleaded Gas,
Natural
Gas |
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Industrial
Metals Futures |
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Copper,
Aluminum,
Cadmium,
Chromium,
Cobalt,
Magnesium,
Manganese,
Mercury,
Nickel,
Zinc,
Tin,
Steel/Iron,
Lead
, Tungsten,
Titanium,
Vanadium,
Uranium,
Palladium
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Precious
Metals Futures |
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Gold,
Silver,
Platinum |
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Grains
Futures |
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Corn,
Canola,
Soybeans,
Soybean Meal, Sunflowerseed,
Soybean
Oil, Azuki
Beans, Palm
Oil, Wheat, Barley,
Oats,
Rice
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Meats
Futures |
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Live
Hogs, Live
Cattle, Pork
Bellies
Feeder
cattle |
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Food/Fibre/Softs
Futures |
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Cocoa,
Coffee,
Milk,
Plastics,
Pepper,
Potatoes,
Paper,
Salt,
Sugar,
Silk,
Tobacco,
Tea,
Lumber,
Onions,
Wool,
Cotton,
Orange
Juice, Rubber |
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FEEDER CATTLE FUTURES
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Feeder cattle are
young animals sent to feedlots for finishing into
"fed" cattle, the basis of the Chicago Mercantile
Exchange’s live cattle futures contracts. The
CME added feeder cattle futures to
its livestock products in 1971, and in 1987 the exchange
added options on futures on this contract. These tools
have enabled cattle producers to manage their price
risk more effectively.
The CME’s feeder
cattle index is a seven-day weighted average of United
States Department of Agriculture (USDA) prices from
a 12-state region: Colorado, Iowa, Kansas, Missouri,
Montana, Nebraska, New Mexico, North Dakota, Oklahoma,
South Dakota, Texas, and Wyoming. Medium #1 and Large
#1 feeder steers weighing between 700 and 849 pounds
are included in the calculation, except for those identified
as fancy, thin, fleshy, gaunt, or full.
Livestock producers face
a great deal of risk. One is uncertain weather, which
affects feed costs, the availability of feed and forage,
rates of gain, conception rates, survivability of young
animals, and shipment. Another risk is the constant
threat of disease -- livestock producers know that staying
on top of animal health requires the best management
in agriculture. Producers have managed such production
risk with top-notch husbandry practices. But no amount
of husbandry can address market risk -- the uncertainty
of prices at market time, owing to shifting supply and
demand factors. That’s where the futures market
comes in.
The Chicago Mercantile
Exchange broke the mold of traditional futures markets
in 1964 by introducing a futures contract on a non-storable
commodity -- live cattle. It was an innovative move
since futures were only traded on storable commodities,
like grain, at the time. But the livestock industry
appeared ready for a central forward market with the
advantages futures could bring. Feeder cattle
futures were introduced in 1971. These tools
have enabled cattle producers to manage their price
risk more effectively. CME continues to work with the
cattle industry to meet producers' changing needs by
improving the cattle and feeder cattle futures contracts.
We give every participant in the cattle industry --
from ranchers to feedlots -- the ability to use feeder
cattle futures and options to manage their price risk.
Speculators can also trade feeder cattle futures and
options in hopes of profiting from changes in price.
In fact, because cattle prices often trend up or down,
many individual speculators are attracted to both live
cattle and feeder cattle futures.
Available Trading Months:
Primary trading months for feeder cattle futures and
options are January, March, April, May, August, September,
October, and November. |
Meats Futures is also spread to: |Live
Hogs|Live Cattle|Pork
Bellies|Feeder cattle|
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