About Feeder Cattle
Feeder cattle are young animals sold to feedlots for fattening. Their price reflects the expected value of finished cattle minus the cost of feeding them, so corn prices matter as much as beef demand.
What moves the feeder cattle price
- Corn and feed costs.
- Live cattle futures prices.
- Pasture conditions and drought.
- Herd rebuilding or liquidation decisions.
A margin between corn and cattle
Feedlots buy feeder cattle, feed them grain for several months and sell them as live cattle. What they can pay for feeders therefore depends on expected live-cattle prices minus feed costs. When corn falls, feedlots can afford to pay more for young animals; when corn spikes, feeder prices often come under pressure. That makes feeder cattle one of the most volatile livestock contracts.
Seasonal supply
Many calves are born in spring and weaned in autumn, so the largest volume of feeder cattle comes to market from September to November. Pasture conditions matter: good grazing lets ranchers keep animals longer, while drought forces early sales. The contract settles in cash against an index of auction prices rather than by delivery.
Contract specifications
| Benchmark future | CME Feeder Cattle (GF) |
|---|---|
| Contract size | 50,000 pounds |
| Minimum tick | $0.00025 per pound = $12.50 per contract |
| Contract months | January, March, April, May, August, September, October, November |
| Settlement | Cash-settled against the CME Feeder Cattle Index |
| Animal | Young steers of roughly 700 to 899 pounds |
Specifications as published by the exchange; they can change, so confirm on the exchange website before trading.
Trading hours
CME livestock futures trade Monday to Friday, about 8:30 am to 1:05 pm US Central Time.
Contract basics
CME Feeder Cattle (GF) covers 50,000 pounds and is cash-settled against the CME Feeder Cattle Index.
Quote unit
US cents per pound. Hours and specifications can change; always confirm on the exchange's website, especially around holidays.
Feeder Cattle FAQ
What moves the price of feeder cattle?
Corn and feed costs. Live cattle futures prices. Pasture conditions and drought. Herd rebuilding or liquidation decisions.
When does feeder cattle trade?
CME livestock futures trade Monday to Friday, about 8:30 am to 1:05 pm US Central Time.
What is the standard feeder cattle contract?
CME Feeder Cattle (GF) covers 50,000 pounds and is cash-settled against the CME Feeder Cattle Index.
How are feeder cattle futures settled?
In cash against the CME Feeder Cattle Index, a weighted average of auction prices for feeder steers, so no animals change hands.
Why do corn prices affect feeder cattle?
Feed is a major cost for feedlots, so cheaper corn raises what they can pay for young cattle.