What Are Livestock Futures?
Livestock futures can be an effective way for more sophisticated investors to gain exposure to this corner of the commodity market. Whereas livestock ETPs offer exposure to multiple commodities, futures contracts are generally more targeted in nature.
Live cattle futures trade on the Chicago Mercantile Exchange, with each contract representing 40,000 pounds of 55% Choice / 45% Select Yield Grade 3 live steers. Priced in center per pound, contracts are available for February, April, June, August, October, and December. Live cattle futures trade under the symbol LE on the CME Globex and LC in open outcry trading.
Lean hog futures are also available on the CME, with contracts representing 40,000 pounds (18 metric tons) of hog carcasses (barrow and gilt). Contract months also include February, April, June, August, October, and December, with the last trade occurring on the 10th business day of the contract month.
Other livestock futures available include feeder cattle and frozen pork bellies.
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