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Feeder Cattle Futures and Options

 Free Feeder Cattle Futures Trading eGuide

Feeder Cattle are young animals sent to feedlots for finishing into "fed" cattle, the basis of CME's Live Cattle contracts. CME added Feeder Cattle futures to its list of livestock products in 1971, and in 1987 the Exchange added options on this contract.

These tools 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.

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
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

See Also: Live Cattle  Lean Hogs  Pork Belly