Feeder cattle futures
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.
Schwab Futures offers trading in Feeder Cattle futures at the CME.
Feeder cattle futures, Chicago Mercantile Exchange, trading symbol FC. The contract size is 50,000 lbs. Minimum tick is $0.025/cwt (0.025 cents per pound), worth $12.50 per contract.
Trade electronically on Globex Monday 09:30 a.m. U.S. ET to 2:05 p.m U.S. ET.
Primary trading months for feeder cattle futures and options are January, March, April, May, August, September, October, and November.