What is the limit on feeder cattle?
May 2021: Initial Resetting of Price Limits for Live Cattle and Feeder Cattle Futures
Contract Title | CME Rulebook Chapter | Current Initial Price Limit |
---|---|---|
Live Cattle futures | 101 | $0.04/lb. |
Feeder Cattle futures | 102 | $0.05/lb. |
What are CME limits?
CME Group U.S. equity index price limits (and corresponding CME and CBOT rules) are designed to coordinate with circuit breakers provisions as applied by the New York Stock Exchange (NYSE). 7%, 13%, and 20% price limits are applied to the futures fixing price and are effective from 8:30 a.m. CT – 2:25 p.m. CT.
What is the size of a CME fed cattle contract?
40,000 pounds
The Contracts Each Live Cattle futures contract represents 40,000 pounds with a minimum price fluctuation of $. 00025 per pound, or $10 per tick. The contract trades Monday-Friday from 8:30 a.m. to 1:05 p.m. Central Time (CT).
How big is a feeder cattle futures contract?
50,000 lbs.
Feeder Cattle consist of calves weighing 600-800 pounds while Live Cattle are cattle fed to the point of harvest weight. A contract size is 40,000 lbs. for Live Cattle or 50,000 lbs. for Feeder Cattle, and they are priced in cents per pound.
What’s the difference between feeder cattle and live cattle?
Feeder cattle are weaned calves just sent to the feedlots (about 6-10 months old), and live cattle are cattle which have attained a desirable weight (850-1,000 pounds for heifers, and 1,000-1,200 pounds for steers), to be sold to a packer.
What are limit down rules?
Limit down is a decline in the price of a futures contract or a stock large enough to trigger trading restrictions under exchange rules. Limits on the speed of market price movements, up or down, aim to dampen unusual volatility and to give traders time to react to market-moving news, if any.
What are daily price limits?
A daily trading limit is the maximum price range limit that an exchange-traded security is allowed to fluctuate in one trading session. Limit up is the maximum amount a price is permitted to increase during one trading day. Limit down is the maximum permitted price decline occurring over one trading day.
How many pounds are in a live cattle futures contract?
Live cattle futures contract specifications
Exchange | Chicago Mercantile Exchange, LC |
---|---|
Contract Size | 40,000 pounds |
Minimum Tick Size and Value | $0.025/cwt (0.025 cents per pound), worth $10.00 per contract. |
What is the difference between feeder cattle and live cattle?
Feeder cattle are weaned calves just sent to the feedlots (about 6-10 months old), and live cattle are cattle which have attained a desirable weight (850-1,000 pounds for heifers, and 1,000-1,200 pounds for steers), to be sold to a packer. The packer slaughters the cattle and sells the meat in carcass boxed form.
What weight are feeder cattle futures based on?
While feeder cattle futures are for feeder steers weighing around 750 lbs, basis can be estimated for any weight, sex, breed, or type of cattle.
What weight is considered feeder cattle?
Backgrounding operations will typically purchase 300–600 pounds (140–270 kg) feeder cattle calves and feed to grow the animals into 650–875 pounds (295–397 kg) backgrounded cattle.
Are feeder cattle a good investment?
A long term investment in feeder cattle production is a play on global income and population growth unrelated to the economic cycle. An investment in feeder cattle provides much higher liquidity than farmland. An investor also receives gains due to management skill, and uncorrelated returns with the stock market.
What is the 9 45 rule?
Rule 1: no trades placed before 9:45 AM. In reality, I try to hold off until 10 AM. However, there are some cases where an opportunity is just too good to pass up. Thus we will stick with 9:45 AM. There will be countless times over the course of this journey where I’ll see a buyer or a seller in the tape.
What triggers limit down?
What is maximum trade limit?
What Is a Daily Trading Limit? A daily trading limit is the maximum price range limit that an exchange-traded security is allowed to fluctuate in one trading session. Limit up is the maximum amount a price is permitted to increase during one trading day.
What are limit up limit down rules?
The SEC’s Limit Up-Limit Down (“LULD”) Rule prohibits trading activity in exchange-listed securities at prices outside specified price bands (“upper band”; “lower band”), which are established at a percentage level above and below the average price of a security over the immediately preceding 5-minute period.
How much is a feeder cattle contract?
$12.50 per contract
Feeder cattle futures contract specifications 0.025/cwt (0.025 cents per pound), worth $12.50 per contract.
What is the CME feeder cattle Index?
The Index is a seven-day weighted average and is defined as the total dollars sold during the seven-day period divided by the total pounds of feeder steers sold during the same seven-day period. Every pound of feeder steer sold during the seven-day period has the same impact on the final price.