Virginia Cattle Price Risk Management

The Chicago Mercantile Exchange (CME) Feeder Cattle (FC) futures contract is based on a very specific set of parameters.

The contract represents a group of a fairly specific type of steers. The CME FC contract is a promise to deliver (or accept delivery, if bought) 50,000 lbs (500 cwt) of steers weighing 650-849 lbs each, graded medium-large frame with #1- #2 muscling at the expiration of the contract. The price of the contract for a given expiration or maturity month is a projection of the value of that type of animal in that month. Another important consideration in the futures market is that contracts are only available in the following months: January, March, April, May, August, September, October, and November. Hedging can be used to lock in a target price using FC futures contracts in advance of selling the physical cattle at the cash market. 

CME Group provides futures and options price quotes for feeder cattle.
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