New Cattle Futures Trader Here

[uboxer]

Hi All,

I am new to live and feeder cattle futures trading and would like to learn more about the business of cattle trading as well as other required fundamentals. I was wondering if anyone can help me with a few starter questions:

1. Where would be a good place to learn more about trading cattle futures? I am extremely new and close to being clueless about cattle trading.

2. What is the difference between live and feeder cattle?

3. What causes the price difference between CME's live and feeder cattle contracts? Same month contracts for both are currently at a difference of about $20.

Any advice will be greatly appreciated.

 

[ivonr]

1. news.tradingcharts (type this site in on google) and click on the beef category...you will learn alot about the factors that cause price swings by reading the news articles, especially the "DJ STORIES OF THE DAY"

2. feeder cattle are younger cattle btwn 500 and 800 lbs that are ready to be put into the feedlot.
live cattle are usually cattle that have finished feeding at the feedlot and are now "fat" and ready for slaughter (and are older than feeders, of course)

3. i wish i knew the answer, i posted this same question yesterday and have yet to receive any answers

 

[1982vett]

Oh my....What a trainwreck this is going to be....you two must be in the same class.

By the way...trading and trading cattle futures has little to do with cattle or any commodity... Learn to read a chart then write and algorithm for trading.

 

[inbredredneck]

considerin you reply on the feedlottin posts
grandaddy says all 3 of yas might be in cahoots

 

[Howdyjabo]

Oh my

no wonder the markets are all screwy
People playing with paper that don't even understand the very basics of the commodity.

There is a difference between live futures and feeder futures becasue the two animals are at totally different places in their lives. They have common issues that influence the market up or down- so they travel together alot- but not necessarily.


Calves TEND to be worth more /lb than finished animals- as there is a profit to be made while adding lbs to get to finished weight.
For example I can buy a 450lb calf at 1.45/lb and put 900lbs on it and sell at $1.15 and make money.
but if I buy a 700lb calf at 1.45 and put 650lbs on it and sell it at $1.15 I will loose money. So obviously I will pay less.
So BASICALLY as the calves get larger the average price/lb will get lower.
Of course there are a MILLION other factors to add in to actually making money/pricing calves.

 

[uboxer]

Dear all,

Thank you for all the replies. I am new and I have read reviews about how good this forum is for cattle traders. I will definitely recommend this forum to traders that I happen to come across.

Happy trading!

 

[TennesseeTuxedo]

Hi All,

I am new to live and feeder cattle futures trading and would like to learn more about the business of cattle trading as well as other required fundamentals. I was wondering if anyone can help me with a few starter questions:

1. Where would be a good place to learn more about trading cattle futures? I am extremely new and close to being clueless about cattle trading.

2. What is the difference between live and feeder cattle?

3. What causes the price difference between CME's live and feeder cattle contracts? Same month contracts for both are currently at a difference of about $20.

Any advice will be greatly appreciated.

Is this a yank?

 

[TexasBred]

Dear all,

Thank you for all the replies. I am new and I have read reviews about how good this forum is for cattle traders. I will definitely recommend this forum to traders that I happen to come across.

Happy trading!

I think you made a wrong turn somewhere. Traders on here actually deliver cattle. BTW how much money you got to lose. :mrgreen:

 

[slick4591]

I could see my way clear to trade for the right amount of cash. :mrgreen: