About Live Cattle
Live cattle futures price fed steers ready for slaughter. The US cattle herd moves in multi-year cycles, so supply can stay tight or loose for long periods, while beef demand follows consumer spending.
What moves the live cattle price
- Herd size and the USDA Cattle on Feed report.
- Feed costs, mainly corn.
- Beef demand, packer margins and boxed-beef prices.
- Weather and pasture conditions.
The cattle cycle
Beef supply moves in long cycles. When prices are low or drought hits pastures, ranchers sell breeding cows and the herd shrinks; it then takes years to rebuild, because heifers must be held back from slaughter to breed. The US herd has been near multi-decade lows, which has supported record cattle prices. Watch heifer retention data in USDA reports for signs of rebuilding.
Demand and seasonality
Beef demand typically peaks from Memorial Day to Labor Day with the grilling season and around year-end holidays. The boxed-beef cutout shows what packers receive for beef, while the weekly cash trade shows what they pay for cattle; the gap is the packer margin. Feed costs from corn, import rules and animal-disease outbreaks are other drivers.
Contract specifications
| Benchmark future | CME Live Cattle (LE) |
|---|---|
| Contract size | 40,000 pounds |
| Minimum tick | $0.00025 per pound = $10 per contract |
| Contract months | February, April, June, August, October, December |
| Settlement | Physical delivery of slaughter-ready steers |
| Key reports | USDA Cattle on Feed (monthly), boxed-beef cutout (daily), cash cattle trade |
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 Live Cattle (LE) covers 40,000 pounds, quoted in cents per pound, and is physically delivered.
Quote unit
US cents per pound. Hours and specifications can change; always confirm on the exchange's website, especially around holidays.
Live Cattle FAQ
What moves the price of live cattle?
Herd size and the USDA Cattle on Feed report. Feed costs, mainly corn. Beef demand, packer margins and boxed-beef prices. Weather and pasture conditions.
When does live cattle trade?
CME livestock futures trade Monday to Friday, about 8:30 am to 1:05 pm US Central Time.
What is the standard live cattle contract?
CME Live Cattle (LE) covers 40,000 pounds, quoted in cents per pound, and is physically delivered.
What is the difference between live and feeder cattle?
Live cattle are finished animals ready for slaughter; feeder cattle are younger animals that will be fattened in feedlots.
What is the Cattle on Feed report?
A monthly USDA report on the number of cattle in large US feedlots, placements and marketings.