|Contract Size||40,000 pounds|
|Product Description||55% Choice, 45% Select
Yield Grade 3 live steers
|Pricing Unit||Cents per pound|
|Tick Size||$0.00025 per pound ($10 per contract)|
|Daily Limits||$0.030 per pound
expandable to $0.045
|Trading Hours||M 9:05 AM - 4:00 PM CT
T - Th 8:00 AM - 4:00 PM CT
F 8:00 AM - 1:55 PM CT
|Initial Margin /
Other commodities rose in price because production growth was constrained by physical limitations imposed by the Earth. The US cattle herd actually declined over the past 12 years from culling.
Live cattle prices in the future are lower than spot prices
Typically indicates near-term shortage, but there’s no real shortage: feedlots are holding back cattle to keep prices high. Cash trade volume is low. Spot prices (low-160s) have been dragging near-dated contracts up recently.
Feeder cattle prices in the future are close to spot prices
Feeder prices have risen together. Feedlots have been trying to place more cattle and market indicates demand will be consistent.
Domestic consumption of US beef has fallen while exports have risen. In aggregate, demand for US beef has fallen in the past 12 years.
Beef inflation has outpaced pork and chicken inflation over the past decade.
The premium to buy beef at retail is the widest in recent history.