Feeder Cattle Futures (GF) | Contract Overview

Feeder Cattle futures allow traders to buy or sell cattle at a predetermined price for future delivery. Contracts are marked to market daily, and traders can close positions before expiration. Prices are influenced by supply, feed costs, weather, and consumer beef demand.

Each Feeder Cattle (GF) futures contract represents 50,000 pounds of feeder cattle. Because of this size, price movements can significantly impact profit and loss, making proper position sizing essential.

The minimum price fluctuation (tick size) for Feeder Cattle futures is 0.00025 per pound, which equals $12.50 per contract. Understanding tick value helps traders calculate risk and potential return before entering a position.

Feeder Cattle futures trade on CME Globex from Sunday evening through Friday afternoon, with daily breaks. Most volume typically occurs during regular U.S. commodity market hours.

Margin requirements vary by broker and market volatility. Day trading margin is typically lower than overnight margin. Because GF contracts represent 50,000 pounds, traders should maintain sufficient capital to withstand price swings.

Key drivers include:

• Corn and feed costs

• Weather and drought conditions

• U.S. cattle inventory reports

• Consumer beef demand

• Export trends

• USDA livestock reports

Feed prices and herd size are especially important for feeder cattle pricing.

Yes. Traders can go long if they expect cattle prices to rise or short if they anticipate falling prices. This makes GF futures useful for ranchers hedging livestock and traders speculating on agricultural trends.

Common participants include:

• Ranchers hedging future sales

• Feedlot operators

• Commodity trading advisors (CTAs)

• Agricultural speculators

• Futures day traders

Both commercial and non-commercial traders provide liquidity in the market.

Feeder Cattle futures can be highly volatile due to weather events, USDA reports, and grain price swings. Drought conditions or rising corn prices often create rapid price movement.

Important reports include:

• USDA Cattle on Feed Report

• USDA Cattle Inventory Report

• Grain Stock Reports

• WASDE (World Agricultural Supply and Demand Estimates)

These reports often cause price volatility.