Live Cattle futures are standardized contracts traded on the Chicago Mercantile Exchange (CME) that represent a commitment to deliver or take delivery of a specific quantity of live cattle at a future date. They are used by producers, packers, and investors to hedge against price fluctuations or speculate in the …
Description: Live Cattle futures are one of the primary risk management tools for the beef industry. Launched by the Chicago Mercantile Exchange (CME) in 1964, they allow market participants to lock in prices for live cattle months in advance. The contract size is 40,000 pounds (approximately 18 metric tons) of steers and heifers. Prices are quoted in cents per pound. The contracts trade on the CME Globex electronic platform and are physically delivered at approved stockyards and feedlots across the United States. Live cattle futures are influenced by factors such as feed costs (corn), weather, consumer demand, and government policies. They are part of the broader livestock complex, which also includes feeder cattle and lean hog futures. The market plays a crucial role in price discovery and provides liquidity for the agricultural sector.
Established / Launched: 1964
Founder / Issuer: Chicago Mercantile Exchange (CME Group)
