Feeder Cattle Futures and Feeder Cattle Options
Market
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Free Feeder Cattle Futures E Guide
Dear clients and students of the commodity markets, the
following information should answer all of your questions about Feeder Cattle
Futures and Options. You may also call 800-915-4716 or email
tkfutures@earthlink.net your feeder cattle
future and feeder cattle options questions to be answered by a seasoned professional.
Many people do not understand the difference between
feeder cattle futures and live cattle futures
contracts.
Feeder Cattle refers to the young animals that weigh from 650 pounds to 849
pounds that are sent to feedlots for
finishing into "fed" cattle, the basis of
Chicago Mercantile Exchange's (CME) Live
Cattle contracts. So the cattle are born and raised
for a short period of time in for instance Florida
and then shipped to Kansas to be fattened up for
slaughter. CME added Feeder Cattle futures to
its list of livestock products in 1971, and in 1987
the Exchange added options on this contract.
Click here and learn about other commodity markets.
Feeder cattle futures and options
have enabled cattle producers who use
them to manage their price risk more effectively.
Over the years, the contract has continually evolved
to more effectively serve both long and short
hedgers. Today the CME's feeder cattle future
contract and the live cattle future contract have
increased their volume considerably over the years
to become two of the premiere meat future contracts.
Contact us at tkfutures@earthlink.net for specific feeder cattle
future and option data or click here now open an
account and open your feeder cattle future or
feeder cattle option account today.
Feeder Cattle Futures and Feeder Cattle Options
Contract Specifications
Trading Unit
Feeder Cattle Futures: 50,000 lbs. of 700 to 849 lb.
Medium Frame #1 and Medium and Large Frame #1 feeder
steers
Feeder Cattle Options: One Feeder Cattle Futures
Contract
Live Cattle Futures: 40,000 lbs. of 55% choice, 45%
select grade live steers
Live Cattle Options: One Live Cattle Futures
Contract
Trading Hours
Feeder Cattle
Futures: 9:05 a.m. - 1:00 p.m. LTD (12:00p.m.)
Options: 9:05 a.m. - 1:02 p.m. LTD (12:00p.m.)
Trading Months
Feeder Cattle Futures: Jan, Mar, Apr, May, Aug,
Sept, Oct, and Nov, Eight months listed at a time
Live Cattle Futures: Feb, Apr, Jun, Aug, Oct, Dec,
Seven months in the February Bi-monthly Cycle
Feeder Cattle Options: Jan, Mar, Apr, May, Aug, Sep,
Oct, Nov.
Flex Options: Eight options months listed
Live Cattle Options: Feb, Apr, Jun, Aug, Oct, Dec,
Serial Months
Flex Options: Six months in Feb Bi-monthly cycle.
One serial month
Point Description
Feeder Futures and Options: 1 point = $.0001 per
pound = $5.00
Live Cattle Futures and Options: 1 point = $.0001
per pound = $4.00
Minimum Price Fluctuation
Feeder Cattle Futures and Options-regular: 0.00025 =
$12.50
Live Cattle Futures and Options-regular: 0.00025 =
$10.00
Feeder Cattle Options-cab: 0.000125 = $6.25
Live Cattle Options-cab: 0.000125 = $5.00
Options Strike Prices
Feeder Cattle Options: Cents per pound. First two
months only- $0.01 intervals, $0.60, $0.61, $062
etc. All other months- $0.02 intervals, $0.62,
$0.64, $0.66, etc.
for spot month, $0.005 intervals, $0.605, $0.610,
$0.615, etc.
Flex Options are listed in intervals of $0.0025
Live Cattle Options: Cents per pound. First two
months only- $0.01 intervals e.g. $0.76, $0.77,
$0.78. All other months $0.02 intervals e.g. $0.76,
$0.78;
Serial Options - $0.01 intervals. Flex Options are
listed in intervals of $0.0025.
Product Code
Live Cattle Futures: LC
Feeder Cattle Futures: FC
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Open an Account today
Hedging Cattle using CME Futures and Options
click below for a CME Hedging Brochure
http://www.cme.com/files/HedgingElectronicFile.pdf
To learn about other meat futures visit
live cattle futures,
lean hog futures and
porkbelly futures.
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