Last updated October 2015 Additional Info Recent Posts on Live Cattle Live cattle futures can allow traders to address price risk among those involved in the trade of live cattle and to assess supply and demand of cattle for both the current and future outlook. Live cattle futures and options are traded in cents per pound on the Chicago Mercantile Exchange. The Unites States exports over 2 billion pounds of beef very year. When the cattle reach an approximate weight of 1,200 lbs., they are considered to be suitable for slaughter and are sold to meat packers. At the feed lots, live cattle are fed a certain diet in order to inhibit weight gain. Around 8 months of age, cattle are weaned from their mothers and sent to feed lots in order to encourage growth to full size (600-800 lbs.). Most cattle are bred in the summer to ensure that their calves are born in the spring season because of both the temped climate and the abundance of pasture to feed on. These contracts are listed with, and subject to, the rules and regulations of CME. A trade done at the Base Price of 0 will correspond to a “traditional” TAS trade which will clear exactly at the final settlement price of the day. TAS products will trade a total of four ticks above and below the settlement price in ticks of the corresponding futures contract (0.00025), off of a “Base Price” of 0 to create a differential (plus or minus 4 ticks) versus settlement in the underlying product on a 1 to 1 basis. Trading in all CME Livestock TAS products will be 9:05-13:00 Chicago time on Mondays or on the Tuesdays that follow a Monday holiday, and Tuesday through Friday 8:00-13:00, Chicago time. The Last Trade Date for CME Livestock TAS products will be the second to last business day in the month prior to the named contract month. Trading at settlement is available for first 2 listed futures contract months, a calendar spread between the first and second contract month, and are subject to the existing TAS rules. Trade At Marker Or Trade At Settlement Rules Last business day of the contract month, 12:00 p.m. CT-Closeįebruary (G), April (J), June (M), August (Q), October (V) & December (Z) CT on Monday- Thursday, the markets halt and restart at 8:00 a.m. Live Cattle Futures Contract Specifications Contracts for live cattle in the CME are for 18 metric tons. This process begins when they are calves and ends when they reach the required weight after this, they are then transferred to feedlots and considered "feeder cattle". Until they reach a specific weight (typically 600-800 lbs), live cattle are specially raised for beef production.
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